ghananlpcommunity/ghana-gov-speeches-sentences huggingface dataset:
Similarly, the industry’s net income or profit -after-tax increased to GH¢4.3 billion from GH¢2.8 billion, representing a 51.4 percent increase in June 2023.
Overall, the banking sector’s performance improved in the first half of 2023 .
For the rest of the year, the banking sector is expected to remain broadly stable , supported by the regulatory reliefs and sustained growth in profitability.
Also, banks have been advised to submit capital restoration plans to recapitalize progressively over a three-year period.
The turnaround in banks’ profits, together with the planned equity capital injections, is expected to help rebuild banks’ capital buffers, enhance resilien ce, and reposition the sector to support the country’s growth agenda.
Redefining Professionalism in Banking through Ethics 7.
Ladies and Gentlemen, now to the CIB’s 60th Anniversary celebration.
The chosen theme for the ce lebration, which is, “Redefining professionalism in banking through ethics ” provides a unique opportunity to rethink the core measures that would help build a more sustainable and trustworthy financial industry.
The global financial crisis of 2008 and even our own banking crisis , which reflected poor ethical values based on weak governance structures and internal controls, highlighted the need for renewed emphasis on ethics and responsible behaviour in the banking sector.
A key lesson drawn from the crisis is that the lack of ethical standards within the banking sector puts all stakeholders at risk, especially shareholders and depositors, and ultimately destabilises the entire financial sector, with spillovers on the economy.
This calls for the entrenchment of ethical behaviour in the conduct of banking sector operations.
To achieve this, let me share a few points for the Institute , and indeed the banking sector , to ponder over during the Anniversary celebrations .
Broadly, banking institutions should: • prioritize ethical leadership at all levels.
This means the boards, executives, and line managers should set the tone at the top by adhering to high ethical standards and then promoting those same standards throughout the organization, • invest in ethics training and education for all employees.
This means bank staff must understand the importance of ethical behaviour, the consequences of unethical actions, and how to make ethical decisions in complex situations, • develop clear and comprehensive codes of conduct that outline expected behaviours and ethical guidelines for all employees.
These codes should be readily accessible and regularly updated to reflect changing industry standards and regulations, • establish robust whistle-blower protection programmes that are well-publicised within the institution and easy to access, to encourage employees to report unethical behaviour without fear of retaliation, • promote transparency in financial transactions and decision -making processes.
Individuals must be held accountable for their actions and decisions, and unethical conduct must be promptly addressed and rectified, • incorporate sustainability and responsible banking principles into their operations.
Considerations of the environmental, social, and governance (ESG) must be factored into investment and lending decisions to promote long -term 5 economic and social stability.
Here, I would take this opportunity to encourage banks to ensure compliance with the Ghana Sustainable Banking Principles, • strictly adhere to regulatory requirements and collaborate with regulators to maintain a strong and well-regulated financial industry, supported by higher ethical standards, • reward ethical behaviour through performance evaluations and incentives.
Banks should recognize and promote employees who consistently demonstrate ethical conduct and contribute to the organization's ethical culture, • regularly evaluate and update ethical frameworks and practices.
Ethical standards should evolve in response to changing societal values, technological advancements, and emerging risks; and, most importantly, • consider the interests of all stakeholders , including shareholders, employees, customers, and the broader society, when making business decisions.
Ethical banking recognizes the interconnectedness of these stakeholders' interests.
Ladies and Gentlemen, by redefining professionalism in banking through ethics, financial institutions can regain the trust of customers, investors, and the public.
This will not only enhance credibility but also contribute to a more stable and resilient financial system that serves the best interests of society.
In all of these, the Bank of Ghana remains committed to providing the supportive frameworks to ensure ethical and sustainable banks.
So far, the Bank has commenced development of a Business Model and Viability Analysis Framework to enhance its supervisory practices for assessing the sustainability of banks’ business models.
BMA allows supervisors to identify banks’ vulnerabilities at an early sta ge and ensure safety and soundness.
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In addition, the Bank has incorporated a limited Asset Quality Review in its supervisory programme for 2023.
This special exercise is being conducted by the Bank to assess the health of banks’ loan and investment portfolios to determine whether their asset classifications are in line with the required classification norms as well as International Financial Reporting Standards.
Ladies and gentlemen, as a follow-up to the implementation of Pillar 1 of the Basel II/III implementation in 2018, the Bank intends to scale-up the regulatory reform agenda through engagements with the Ghana Association of Banks on the roll-out of Pillar 2 of the Basel II/III capital framework.
In this regard, regulatory guidance will be provided to the following aspects of Pillar 2: • Liquidity Risk Management, • Internal Capital Adequacy Assessment Process (ICAAP), • Guide to Supervisory Intervention, • Concentration Risk, • Interest Rate Risk in the Banking Book, among others.
To pave way for a seamless rollout of Pillar 2, the Bank issued the Risk Management Directive in November 2021 to e nsure that banks put in place appropriate systems for identifying, measuring, evaluating, controlling, mitigating, and reporting material risks that may affect their ability to meet obligations to depositors and other stakeholders.
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The training for Principle 1 and Principle 2 occurred in 2020 and 2022, respectively.
In July 2023, the BOG completed industry training on the remaining principles, Principles 3-7, which was attended by Chief Risk Officers, Chief Compliance Officers and Su stainability Officers from the various banks.
It is expected that this will lead to an improvement in industry reporting on the principles.
The Ghana Sustainable Banking Principles and the Sector Guidance Notes reflect a process- led initiative to take account of the environmental considerations, social inclusion, and good governance in the lending decision-making by banks in Ghana.
It is also a guide to banks in mainstreaming the fundamental tenets of sustainability in business and operations, leading to enhanced growth and increased returns.
In this regard, the BOG is working on issuing a Climate-related Financial Risk Directive to provide guidance on add ressing climate risk and related issues in the industry.
These initiatives are aimed at building a robust financial system.
Distinguished Ladies and Gentlemen, the banking sector has shown some improvement with the half year performance, despite the significant losses posted in 2022 .
Looking ahead, banks are expected to rebuild capital buffers to support the economy.
Let me take this opportunity to assure the public that the Bank will continue to monitor developments and ensure strict regulatory and ethical compliance in the banking sector to ensure stable and 8 resilient financial system, contributing significantly to the overall growth and development of the economy.
In concluding, let me recommend for your Executive Leadership Programme to consider addressing issues surrounding: • Financial Crime, • Cybersecurity, • Role of Boards in Governance, • Operational Resilience, • Risk Management, and • Senior Management Culture and Conduct Rules.
Finally, I would like to commend the CIB once again for providing thought leadership and training on relevant issues to support and promote ethical banking professionalism in Ghana.
Congratulations again on the occasion of your 60th Anniversary celebrations and I wish you a successful launch.
GRAND LAUNCH OF GCB BANK’S 70TH ANNIVERSARY CELEBRATIONS ADDRESS BY DR.
ERNEST ADDISON GOVERNOR, BANK OF GHANA PRESENTED BY DR.
MAXWELL OPOKU-AFARI FIRST DEPUTY GOVERNOR, BANK OF GHANA LABADI BEACH HOTEL, ACCRA 2ND AUGUST 2023 1 Honourable Minister for Finance The Board Chairman and Directors of GCB Bank, The Managing Director of GCB Bank, Heads of Departments and Staff of GCB Bank, Distinguished Executives of the Banking Industry Invited Guests, Ladies and Gentlemen, Good morning.
Thank you for the kind invitation to join you today at this Grand Launch of GCB Bank’s 70th Anniversary Celebrations, under the theme, ‘70 years of providing unrivalled financial solutions towards socio-economic development of Ghana’.
It is indeed a joyous occasion and o ver the past seven decades, GCB Bank has stood out as a strong indigenous bank, rendering invaluable financial services to this country .
Established as the Bank of the Gold C oast in 1953, GCB Bank has , over the past 70 years, expanded organically and now provides top-notch electronic banking services and products that are unique, reliable, and convenient to customers.
More importantly, these value-added services have supported Ghana’s broader agenda of financial deepening and inclusion.
Today, as we chronicle the key achievements of GCB Bank, Mr Chairman, let us appreciate the founding fathers of the bank, the past and current management, and staff of GCB Bank PLC for their sense of duty, commitment and dedication that has brought the bank this far.
Indeed, GCB Bank has played significant roles in promoting the socio-economic development of the country.
At various points in the nation’s history, the bank has been called to action to help with solutions during economic challenges that confronted the nation.
Suffice it to say that over the last seven decades of its existence, the GCB Bank has delivered on its mandate of supporting government as w ell as i ndigenous private enterprise s.
Chairman, over the period of its existence, GCB Bank has surmounted significant challenges, rebranded from Ghana Commercial Bank to a new image of GCB Bank, and with resilience , maintained its position as a leader in the competitive banking environment.
These positive developments have been accompanied by strong 2 financial performance, especially in asset g rowth and deposit mobilisation .
In 2017, when the financial sector clean -up exercise was underway, GCB Bank acquired selected assets and liabilities of two indigenous banks and expanded its branch network and ATMs to over 185 and 340, respectively, to cont inue being the most dominant player in Ghana’s banking industry.
History of GCB Bank.
Ladies and Gentlemen, GCB Bank is indeed the oldest indigenous bank in Ghana.
Its establishment dates back to 1947, when there were proposals from leading politicians in the then Gold Coast for the establishment of a national bank with central banking functions.
In 1949, a select committee of the Legislative Assembly was appointed to investigate the establishment of a national bank with purely central banking functions.
In 1951, the government appointed Sir Cecil Trevor to examine the question of setting up a national bank on commercial lines to finance development projects and to act as a reserve bank and to provide clearing house services .
Based on his recommendation, a state-owned commercial bank was established in 1952 by the Bank of the Gold Coast Ordinance.
The new Bank which was named Bank of the Gold Coast now GCB Bank started Operations in 1953.
In 1953, the Bank of the Gold Coast was set up by the Government and headed by Alfred Engleston, formerly of the Bank of England.
Eventually the Bank was split into two: the Bank of Ghana, operating as a bank of issue, to be developed into a complete central bank; and the Ghana Commercial Bank, to be developed into the largest commercial bank with a monopoly on the accounts of public corporations.
GCB Bank, then Bank of the Gold Coast, started operations with 27 employees.
Initially, it focused on servin g Ghanaian traders, farmers, and business people, who could not obtain financing from the expatriate banks.
In July 1957, after Ghana gained independence, Alfred Engleston was appointed as the first Governor of the Bank of Ghana.
As expected, the Bank of Ghana took over the management of the currency and in July 1958 issued its first National Currency - the Cedi - to replace the old West African currency notes.
The Bank of the Gold Coast was re-branded to Ghana Commercial Bank, after Ghana attained Independence.
The 3 bank assumed the role and functions of Government bankers and began to take over the finances of most Government departments and public corporations.
The bank was wholly owned by the Government of Ghana.
However, in 1996, when government shareholding stood at 51.17%, the shares of the bank was listed on the Ghana Stock Exchange.
Currently, government ownership stands at 21.36%, while institutional and individual holding adds up to 78.64%.
In 2013, the bank renamed itself GCB Bank Ltd, with a new brand identity which was launched at the end of 2014.
Today, GCB Bank Ltd serves the banking needs of large corporations, parastatal companies, small and medium enterprises as well as individuals.
From the one branch of the 1950s, GCB Bank now has over 150 branches and 11 agencies throughout the country.
The bank posted a return on equity of 21.7 percent in 2022, despite the challenging macroeconomic environment.
Additionally, the bank’s loans and advances market posted a balance of GH¢5.7 billion, representing 9.4 percent share of the total loans and advan ces market.
Indeed, as at end-May 2023, the bank’s share of loans and advances stood at 10.4 percent, making GCB Bank the second largest issuer of loans and advances to the public and private sectors of the Ghanaian economy.
On loans to households, GCB Bank came first with a share of 18.6 percent of the total household loans granted by the banking industry at end -May 2023.
Thus, the bank does not only provide financial intermediation to benefit households, but also supports gover nment with a share of 12.1 percent of the industry’s total net investment in government securities at end-May 2023.
Concerning safety, soundness, and resilience, GCB Bank compares favourably with the banking industry’s average, given its size and the level of financial intermediation.
The bank’s Capital Adequacy Ratio (CAR) stood at 17.0 percent as of May 2023, well above the regulatory prudential minimum of 10.0 percent and above the industry’s average of 14.6 percent.
It is of little surprise that GCB Bank is rated Ghana’s safest bank by Moody’s, Fitch, Standard & Poor’s, and the most compliant Bank in Africa by the Association for Certified Compliance Professionals in Africa (ACCPA).
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It is also refreshing to note that GCB Bank has taken cyber security issues very seriously, with some major milestones.
These include being the first financial institution in Ghana with a Security Operations Centre (SOC) to become a full member of the Foru m for Incident Response and Security Teams (FIRST) .
The bank has also successfully deployed a world class SOC running on a 24x7 basis , successfully integrated the bank’s SOC with the Bank of Ghana’s SOC , and finally, acquir ed ISO 27001 and PCI-DSS certifications.
In the drive towards innovation, GCB Bank launched Ghana’s first bank -led mobile money service, that is, G -Money, which currently serves more than 2.7 million customers with services such as money transfer, bill payments, etc.
All these stride s have earned the Bank recognition, including being adjudged the top financial services firm at the 2022 Ghana Club 100 Awards.
The Bank ranked first in the banking sector and tenth in the list of 100 topmost prestigious companies in Ghana.
Although GCB Bank placed 10th in the overall 100 best companies operating in Ghana at the 2022 Ghana Club 100 Awards, it was the only bank and financial institution among the first- 10 best companies in Ghana.
We applaud the entire Management Team and Staff of GCB Bank for the hard work in attaining this feat.
Chairman, GCB Bank has remained a key facilitator of Ghana’s international trade with dealings in letters of credit, financing medium -term loans, forward contracts, export credit guarantee lines, among others.
In 2022, for instance, the bank tripled its net trading income to GH ȼ487.2 million, from GH ȼ157.5 million in 2021.
In March 2023, GCB Bank successfully completed the first Pan-African Payment and Settlement System (PAPSS) client transaction in Ghana, which involved a Ghanaian incorporated entity initiating a supplier payment from GCB in Ghana Cedis to a beneficiary in Nigeria who received the payment in Naira instantly.
This innovation cements GCB’s critical role in promoting trad e with other Africa countries under the AfCFTA.
GCB remains committed to providing innovative and efficient banking solutions to its customers such as the e-wallet, e-payments, and cashless banking to the market.
In addition, GCB Bank has set up a strong corporate social responsibility framework, providing support to various sectors of the economy , such as ed ucation, health, culture, tourism, sports, and the environment.
Through its CSR activities, the bank has 5 extended support to the Ghana Navy and was at the forefront of the COVID-19 fight with donations to the National Response Team through the Ministry of Health.
Chairman, it is evident that the Ghanaian economy is currently undergoing some adjustments, which calls for innovation and creativity in business conduct, especially in the banking sector.
The Domestic Debt Exchange Programme (DDEP) affected profitability and solvency of banks in 2022, but performance of banks during the first half of 2023 looks promising.
The Bank of Ghana has also granted some temporary regulatory reliefs to dampen the impact of the debt restructuring and these, together with the expected operationali zation of the Ghana Financial Stability Fund, should provide adequate support to the banking sector.
Furthermore, banks whose CAR levels have dropped below the 10 percent minimum due to the DDEP have been advised to provide recapitalisation plans for review.
In this directi on, I must congratulate the shareholders of GCB Bank on agreeing to allow the bank to raise additional capital of GHȼ1.0 billion to: • meet regulatory capital adequacy ratio requirements; • enhance the bank’s deal -making capacity and take advantage of opportu nities available to the Bank while preserving the bank’s core strengths; • strengthen access to funding markets and bolster confidence in the bank; and • support targeted and prioritized investment in digital transformation and ultimately help to drive the bank’s business strategy.
Chairman, I believe GCB Bank will surmount all the emerging economic and financial challenges, given the collaboration between the regulator, on the one hand, and directors and shareholders of GCB Bank, on the other hand.
On this note, I extend my warm felicitations to the Board, Management and Staff of GCB Bank on your 70th Anniversary celebrations.
I wish you all joyous celebrations!
Thank you very much for your attention.
LAUNCH OF IFC’s INTEGRATED ENVIRONMENT, SOCIAL AND GOVERNANCE (IESG) GHANA PROGRAMME WELCOME REMARKS BY MRS ELSIE ADDO AWADZI SECOND DEPUTY GOVERNOR, BANK OF GHANA IFC OFFICE, ACCRA 6TH JULY 2023 1 The Senior Country Manager, International Finance Corporation (IFC) The Head of Cooperation in Ghana, State Secretariat for Economic Affairs, Switzerland (SECO) Representatives of the Environmental Protection Agency (EPA) Representatives of the Ghana Association of Banks (GAB) Representatives of the Chartered Institute of Bankers Colleagues from the Bank of Ghana (BoG) Invited Guests, Ladies and Gentlemen, 1.
I bring you warm greetings from Governor Ernest Addison and the entire management team at BoG.
I am honoured to be providing the welcome remarks at this kick -off event to formalise the partnership between IFC, SECO, and BOG for the implementation of the Integrated Environment, Social, and Governance (IESG) Ghana Programme.
The IFC and SECO have been long -standing strategic and important partners to BoG in the development of key interventions for the banking sector.
Our cooperation over the years has yie lded many benefits in terms of capacity building and the development of market infrastructure to promote the development of Ghana’s financial sector.
Among other things, the IFC with SECO support were instrumental in the joint development of the Sustaina ble Banking Principles and Sector Guidance Notes by BoG, the Environmental Protection Agency, and the Ghana Association of Banks.
Following the launch of the Sustainable Banking Principles in November 2019, the IFC has provided additional technical suppo rt to BoG for the design and 2 roll-out of a standardised reporting template by which banks now report to BoG’s Banking Supervision Department on the extent to which they are complying with the seven principles.
The IFC has also supported BoG through capacity building of BoG staff and the development of a road map for BoG’s own internal sustainability commitments under Principle 2 of the Sustainable Banking Principles.
Finally, IFC has supported the banking industry with the development of a roadmap for capac ity building of the industry which is currently being rolled out to promote more effective implementation of the Sustainable Banking Principles by the end of 2023.
Building on these successes, this new partnership being launched today will deliver several outputs that will help make sustainable banking a core feature of banking in Ghana to help banks manage their ESG risk and to help promote a more sustainable and resilient economy.
The IESG Ghana Programme is a four-year programme of the IFC with funding support from the SECO.
It seeks to promote an enabling environment for sustainable banking and to build capacity for improved ESG practices for financial intermediaries (FIs) and corporate clients to help promote stronger and more sustainable local businesses, boosting investments in key sectors of the economy, and leading to a more diversified and resilient economy.
Through its collaboration with BoG, IFC will continue to sup port the implementation of the Ghana Sustainable Banking Principles, build the capacity of local training partners on ESG-related matters, and support BoG’s ESG-related regulatory developments for banks and other regulated entities.
Ladies and Gentlemen, it is BoG’s expectation that this new partnership will help to firmly entrench good practices in sustainable banking in the Ghanaian banking landscape over the next few years.
We see the launch of the IESG partnership today as a major milestone for promot ing the resilience of the banking sector and the economy as a whole.
Sustainable banking can be a crucial tool for addressing the structural vulnerabilities of our economy, and can create long -term value for all economic actors, by promoting a more sustainable and equitable future.
We also continue to count on the strong cooperation with the EPA and GAB to make the Sustainable Banking Principles an even bigger success.
On behalf of BoG , under the leadership of Governor Addison, I would like to thank the IF C and SECO again for their continued commitment to the development of a stable, inclusive, and resilient financial system for Ghana.
I wish us all a successful kick -off meeting and workshop and a mutually beneficial partnership under the IESG programme.
BOOK LAUNCH CENTRAL BANKING IN GHANA AND THE GOVERNORS (INSTITUTIONAL GROWTH AND ECONOMIC DEVELOPMENT) REMARKS BY DR.
MAXWELL OPOKU-AFARI FIRST DEPUTY GOVERNOR, BANK OF GHANA AFRICAN REGENT HOTEL, ACCRA 24TH JUNE 2023 1 Mr.