BoG and Monetary Authority of Singapore to create Financial Trust Corridor

The Bank of Ghana and the Monetary Authority of Singapore are creating a Financial Trust Corridor (FTC) – a dedicated ecosystem – for mutual recognition and closer relationships between businesses, including Small and Medium Scale enterprises (SMEs), and financial institutions on the platform.

The FTC will comprise of a governance framework and digital infrastructure for banks and financial technology companies in both countries.

According to the Governor of the Bank of Ghana, Dr. Ernest Addison, participants can refer to and utilise key information available on the platform for credit assessment, whilst adhering to domestic and international regulations, including data protection and Anti-Money Laundering requirements.

Participating SMEs will have the trust of financial institutions, leading to the much needed financial sector support for SMEs growth.

Speaking at a Business Sans Borders Stakeholder Engagement, the Governor said “the importance of this project to partner countries cannot be underestimated. While the barriers to doing business across national boundaries may be high for SMEs, digital technology has proven a leveller. It is for this reason that the partner countries have committed to harness the potential of digital technology to overcome hurdles to international trade and improve global competitiveness of businesses.”

“With massive investment in financial sector infrastructure, a reliable and widespread telecommunication infrastructure, a biometric national identification of high coverage, a robust and resilient banking sector, and a vibrant Fintech ecosystem, the stage is set to facilitate Ghanaian SMEs effective participation in the global economy, via these initiatives”, he explained.  

As the host country of the African Continental Free Trade Area (AfCFTA), Dr. Addison said Ghana is also expected to play a leadership role in improving the international trade fortunes of the Continent.

In this regard, he said the BSB 6 project provides another important platform towards this regional aspiration as the lessons to be learnt can be valuable to AfCFTA’s project on internationalization of SMEs, explaining further that “this is a shared responsibility of Ghana Government and all private sector actors, and participants at this forum have been carefully chosen to reflect this reality.”

He pointed out that the prospects of the BSB project cannot be gainsaid, adding, iIts potential contribution to formalising the Ghanaian economy and unleashing the prospects of SMEs are enormous.

The Governor concluded, saying, “the future is digitisation and fostering SMEs participation in the digital economy is an important component of our national development programme. This calls for our collective effort as stakeholders and market players, of which the BSB project will be an enabler. I am of the firm conviction that this forum would create the right atmosphere for a healthy exchange of ideas towards successful project that would strengthen SMEs to make impactful contribution to Ghana’s economy.”

The BSB project was initiated in 2019, under the direction of Vice President, Dr. Mahamudu Bawumia and Tharman Shanmugaratnam of Singapore.

The objective is to collaborate and leverage the capabilities of digital technology to expand the frontiers of businesses, especially Small and Medium-sized Enterprises (SMEs) in Ghana and Singapore. Since then, the Bank of Ghana has signed a Memorandum of Understanding with the Monetary Authority of Singapore to collaborate on projects of mutual interest in furtherance of the BSB project objectives.

Source: Myjoyonline