BoG charge banks to deploy strong risk systems to sustain financial stability

The Bank of Ghana is urging commercial banks to implement a strong risk management systems in their operations to avoid external shocks that may disrupt the banking industry.

Speaking at the 39^th Annual General Meeting of the Ghana Association of Banks in Accra, Head of Banking Supervision at the Bank of Ghana, Osei Gyasi said although the industry is resilient, there is the need for strong policies to make the system withstand external factors.

Mr. Gyasi believes banks must make efforts in sustaining the gains chalked so far.

“Currently, the banking sector continues to exhibit strong performance despite challenges in the macroeconomic environment. The sector remains healthy with some improvement in assets. However the recent developments in the micro economy may put some outside risk to the sector in the outlook, hence banks must deploy a strong risk management system to ensure stability” he charged.

Speaking in an interview with Joy Business, Chief Executive of the Ghana Association of Banks, John Awuah, hinted that the industry is on the lookout for new strategies to deal with digital related fraud in the system.

“Internal staff involved in these fraud cases has been a worrying trend for banks and I must say the Bank of Ghana has been accurate with its report on such cases”.

“We have been working together to find some solution and if you may recall, some banks staff have been arrested and prosecuted for such offences. We are also retooling our infrastructure to be able to detect and avoid some of these activities” he mentioned.

The association also used the occasion to launch the second edition of its magazine known as the Banker’s Voice.

The magazine with support from Auditing and Accounting Firm, KPMG, as the knowledge partner analysis the prospects of the industry and some signals that may keep the financial sector going.

The Ghana Association of Banks reported strong financial sector growth in 2021 and the first half of 2022 despite challenges facing the economy.

The members recorded increases in deposits and assets as well as improved performance in profits.

Source: Myjoyonline