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Financial Sector Development, Savings Mobilization and Poverty Reduction in Ghana

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Financial Development, Institutions, Growth and Poverty Reduction

Part of the book series: Studies in Development Economics and Policy ((SDEP))

Abstract

Domestic resources serve as a vital engine of growth and poverty reduction. However, the effective mobilization of domestic resources depends on an efficient and well-developed financial market. The financial sector in Ghana has undergone change in terms of the number of institutions and services rendered, as a result of the financial sector liberalization programme pursued in the late 1980s, which led to interest rate liberalization and the entrance of new players. The outcome of this liberalization policy is reflected in Ghana’s financial development indicators: the M2/GDP ratio increased from 0.195 in 1996 to 0.32 in 2003. Similarly, over the same period the currency/M2 ratio declined from 0.41 to 0.29.

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Authors
  1. Peter Quartey
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Editor information

Editors and Affiliations

  1. UNU-WIDER, UK

    Basudeb Guha-Khasnobis (senior research fellow) & George Mavrotas (Chief Economist of the Global Development Network (GDN), formerly a research fellow and project director) (senior research fellow) &  (Chief Economist of the Global Development Network (GDN), formerly a research fellow and project director)

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© 2008 United Nations University

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Quartey, P. (2008). Financial Sector Development, Savings Mobilization and Poverty Reduction in Ghana. In: Guha-Khasnobis, B., Mavrotas, G. (eds) Financial Development, Institutions, Growth and Poverty Reduction. Studies in Development Economics and Policy. Palgrave Macmillan, London. https://doi.org/10.1057/9780230594029_5

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