ghananlpcommunity/ghana-gov-speeches-sentences huggingface dataset:
These, supported by positive business and consumer sentiments on the economy, should spur growth over the medium-term.
1 9 57 OFFICIAL LAUNCH OF MOBILE MONEY INTEROPERABILITY PROJECT SPEECH DELIVERED BY DR.
ERNEST Y. ADDISON GOVERNOR, BANK OF GHANA ACCRA MARRIOT HOTEL 10 MAY, 2018 2 BANK OF GHANA ES T.
1 9 57 Vice President, Alhaji Dr.
Mahamudu Bawumia Chief Executive Officer and Management of GhIPSS Chief Executive Officers of Banks and Mobile Money Operators Members of the Banking fraternity Ladies and Gentlemen 1.
It is an honour and pleasure to join you on this special occasion to launch the mobile money interoperability project which would mark a new dawn of open and interoperable systems.
Just as you can call people on any network seamlessly, you can now send money across mobile money networks seamlessly to the full modernization of the payment and settlement systems.
Today marks a signifi cant milestone in the collaborative efforts between all stakeholders in the financial services sector to push the boundaries of Ghana’s payment s ystems.
This particular development further attests to the Bank of Ghana’s broad objective of promoting an all-inclusive safe and sound financial sector, and collaborations between the financial sector and the communications sector.
Ladies and Gentlemen, the development of the financial sector in Ghana is on course, and the payments systems is fundamental to this process.
Today’s launch started about a decade ago with the establishment of the Real Time Gross Settlement System (RTGS) , 3 BANK OF GHANA ES T.
1 9 57 the electronic Central Securities Depository (CSD), the Automated Clearing House (ACH) system and Codeline Cheque Truncation system.
All these systems have been working smoothly over the years and today, we are adding another layer to harness the advantages of technology and bring most economic activities into the financial system.
The Bank’s Strategic Roadmap set out the broad agenda to ensure interoperability between banks and mobile money .
Considering the rapid growth in mobile money users in the financial ecosystem, the interoperability objective was in the right direction.
The full implementation of the interoperability system is therefore expected to further deepen financial inclusion, p romote Ghana’s cash -lite agenda, and most importantly, serve as a viable vehicle for financial intermediation.
Presently, the country is witnessing a shift to a new kind of retail banking system where a large segment of the population, previously unbanked, are being absorbed into the financial services sector, via, mobile money.
The number of mobile money transactions alone have grown by about 177 percent between 2013 and March 2018, reaching total transactions of 312.93 million and valued at GH¢52.35 bil lion in March 2018.
This compares with 48.24 million transactions valued at GH¢5.91 billion in March 2015.
Currently, there are 25.3 million mobile money accounts compared with 8.20 million in the same comparative periods.
This clearly presents a huge opportunity to bring most of these economically active people into the formal economy; and presents 4 BANK OF GHANA ES T.
1 9 57 a huge potential for domestic revenue mobilization in Ghana.
Clearly, this is the way to go to support the “ Africa Beyond Aid ” agenda.
These changes are significant and today we are here to launch mobile money interoperability .
This system has a number of advantages, which include reduction in the cost of initiating transactions across networks, the removal of third party payment providers to initiate transfers across networks and allow for convenience and security in sending and receiving money irrespective of the network.
With the implementation of interoperability, banks can leverage on the existing 143,418 mobile money agent s to reach out to the unbanked.
Also, there are enormous opportunities for banks to leverage on the over 25 million existing mobile money accounts to expand the scope and appeal of electronic payments, to offer more innovative payment products that provid e convenience, simplicity, speed at minimal transaction cost s as well as offer efficient means of delivering financial services even in the remote areas.
The launch today is a testimony to the collaborative efforts among banks, mobile money operators, GhI PSS and the Bank of Ghana.
This coalition of stakeholders in the mobile money ecosystem must be strengthened further to realize the full potentials of this initiative.
In doing so,  Banks and mobile money operators must work together to develop new, innovative and efficient mobile -based products 5 BANK OF GHANA ES T.
1 9 57 and services at reasonable costs to meet the demand s of consumers.
 Industry players must view mobile money interoperability as an open, vibrant and accessible eco -system that will help drive performance and realization of the objectives of financial inclusiveness and lastly,  We need to enhance c onsumer confidence in the reliability of mobile networks, safety and security of transfers for mobile payments to thrive as means of access to financial services.
Indeed, a strong banking sector works efficiently within a safe and efficient functioning of the payments system infrastructure, which allows for secure delivery of financial services.
Over the last year, the Bank of Ghana has taken measures aimed at stren gthening the corporate governance and risk management structures and practices of the banking sector.
A stronger and resilient banking sector, t ogether with the continued improvements in the payment systems, would help support the country’s growth agenda.
To conclude, I would like to express our gratitude to His Excellency, the Vice President for the drive, encouragement and support in the execution of the mobile money interoperability into the financial landscape.
Let me assure you, that all market participants in this ecosystem will provide the much needed support to ensure its success.
<p>Ghana’s banking sector forms about 85% of the entire financial system, making economic activity largely dependent on bank financing more so than on capital market financing.
A robust banking sector is therefore, critical to the stability of the entire financial system and economic growth ultimately.
<p>The Bank of Ghana would like to see banks that are thriving and profitable for all their stakeholders, particularly depositors and other customers.
Good banking business recognizes the invaluable role that customers play, and ensures that the bank continues to retain the trust and confidence of customers and the public as a whole.<br></p>
<p> Ladies and gentlemen, in recognition of the need for sustainable banking, the Bank of Ghana, in collaboration with the Ghana Association of Bankers and the Environmental Protection Agency, set out in 2015 to bring to the fore, issues affecting the protection and sustenance of our environment, in addition to combating the social issues that affect the livelihoods and lifestyles of the vulnerable members of the public.
BANK OF GHANA EST.1957 1 SUMMIT ON DIGITAL BANKING AND CYBER SECURITY ORGANISED BY STANDARD CHARTERED BANK KEYNOTE ADDRESS BY DR.
ERNEST ADDISON GOVERNOR, BANK OF GHANA MOVENPICK AMBASSADOR HOTEL MARCH 21, 2018 BANK OF GHANA EST.1957 2 Mr.
Chairman, Executives of the Banking Industry, Distinguished Guests, Ladies and Gentlemen, 1.
Good morning and as always, it is a great pleasure to be here today as you discuss digital banking and cyber security which has gained attention recently.
Before I continue, let me commend Standard Chartered Bank for bringing together cyber security experts to share experiences on this all important topic, and hope the lessons learnt would strengthen our resolve to counter cyber threats in the industry.
Chairman, the digitization of banking operations has engineered innovative financial products and expanded the scope of financial services alongside improved payments and settlement systems.
This continuous technological advancement has radically changed how banks conduct their businesses, transformed ways of engagement with customers, and ultimately expanded the scope for financial inclusion.
These notwithstanding, the growth of technology-driven electronic payments are also associated with cyber related risks such as insecure card data systems and identity theft.
Cyber-attacks that target customer transactions and online banking services have increased in tandem with financial technology.
Indeed, financial institutions are not only targets for cyber-attacks but also bear significant legal and fiduciary responsibility to safeguard customers’ privacy and data.
Globally, cyber-attacks on digitized payment products are increasingly becoming sophisticated, especially on financial institutions with insecure IT systems.
BANK OF GHANA EST.1957 3 We have witnessed global cyber-attacks which resulted in disruptions to some critical financial services and destroyed financial assets and savings.
As policymakers and regulators, we will continue to exercise firm oversight of the payment system, monitor risks associated with digital innovation and develop appropriate regulatory responses without stifling innovation.
So far, the Bank has prepared a banking sector Cyber and Information Security guidelines to protect consumers and create a safer environment for online and e-payments products.
Among others, the guidelines seek to; • Create a secure environment for transactions within the cyberspace and guarantee trust and confidence in ICT systems, • Provide an assurance framework for the design of security policies in compliance to global security standards and best practices by way of cyber and information security assessments, and • Protect banks, customers and clients against the potentially devastating consequences of cyber-attacks.
In addition to these cyber security regulations, Bank of Ghana would soon require financial institutions to publish bank-specific cyber security policies in line with the provisions in the Payment Systems and Services Bill which is expected to be passed by Parliament soon.
Financial Institutions would also be required to implement an integrated approach by adopting enterprise-wide frameworks of cyber risk management in line with business objectives.
BANK OF GHANA EST.1957 4 It is anticipated that the integrated approach to cyber security management would support financial institutions achieve both business and security focused objectives, as well as regulatory compliance in an efficient and effective way.
Today’s world is completely different from a decade ago as changes in information and communication technology increase exponentially.
Consequently, financial institutions need to undertake cyber security-related due diligence and assessments, identify proper detective controls, and enforce third party and insider risk programs.
I believe this summit would delve into some of these critical issues on digital banking and its associated cyber security risks.
On this score, I wish you all fruitful discussions.
ERNEST ADDISON, GOVERNOR, BANK OF GHANA THE STATE BANQUET HALL, STATE HOUSE, ACCRA DECEMBER 02, 1 | P a g e The President of the Chartered Institute of Bankers, Chief Executive Officer of the Institute of Bankers, Fellows of the Institute, Members of the Banking Fraternity, Distinguished Guests, Ladies and Gentlemen Introduction 1.
Not to forget, it is also my first time in my role as Governor of the Bank of Ghana to address this annual event which brings the finest banking professionals and other stakeholders in the financial industry.
Certainly, this joyous occasion should provide us the opportunity to de-stress from our very busy schedules and a rather challenging year for the banking industry.
These included bold policy initiatives aimed at fiscal consolidation focusing on tightening expenditure controls and plugging revenue leakages as well as re-profiling short-term debt into long-term instruments to create some fiscal space.
These were complemented by monetary policy management strategies to lower inflation and ensure exchange rate stability.
As a result, the policy rate has been lowered by about 550 basis points with commercial bank lending rates also coming down by some 150 basis, although banks are expected to do better.
In addition, there has been relative stability on the foreign exchange market with the cedi depreciating against the US dollar by 4.6 percent since the beginning of the year compared to the same period average of about 17 percent depreciation over the last three years.
In addition, economic growth is gradually rebounding supported by significant improvements in electricity supply, higher crude oil production and some government initiatives targeted at boosting agriculture and 4 | P a g e manufacturing activities.
In the second quarter of 2017, real GDP growth was estimated 9.0 percent as compared with 1.1 percent same period of 2016 and projected to reach 7.9 percent by end 2017.
However, Madam President, there is no doubt about the fact that macroeconomic stability must remain the necessary condition to facilitate the growth and development objective .
Ladies and Gentlemen, strong financial institutions operating in a stable macroeconomic environment are the bedrock of financial stability.
Such financial institutions typically have a strong capital base well aligned to their risk profile; with a high quality portfolios of assets, high accounting standards, and robust balance sheets; and they have a culture of timely disclosure of information and submit to the discipline of the market.
Such institutions are less vulnerable to external 5 | P a g e shocks and are therefore a source of resilience for an economy.
Good corporate governance mechanisms revolve around the basic tenets of fairness, transparency and accountability.
Ladies and Gentlemen, banking is a business and a good business at that but one that demands integrity and unquestioned reputation.
The 6 | P a g e Goldsmiths, who originated banking, saw a business opportunity after realizing that people who deposited gold with them only withdrew a fraction at a time, while others placed more deposits.
All over the world, the history of banking crisis indicates that without the public ’s assurance of well-capitalized, liquid and sound banks , the intergrity of the financial system, just like the Goldsmith, would be at risk.
The system would be unstable, prone to a run, resulting in closures and financial distress for depositors.
7 | P a g e 14.
Indeed, the global economy is still recovering from t he contagion effects of the US financial crises, which occurred about a decade ago.
Looking back to the 1980s, the Ghanaian economy experienced one of its worst performances which spilled over to the banking sector.
Signs of financial distress emerged as public confidence in the financial sector waned, aggravated by a demonetization programme, and negative real interest rates on bank deposits.
Over time, the economic difficulties coupled with poor corporate governance structures resulted in the eventual collapse of four banks and restructuring of others .
These failures prompted the need for extensive policy measures and reforms to strengthen the legal and regulatory frameworks.
As time progressed, other pieces of legislature were enacted in 8 | P a g e response to the changing dynamics and in line with international standards.
Ladies and gentlemen, in recounting this history, I am seeking to draw attention to the adage that ‘history repeats itself’.
While no systemic challenges to the financial sector arose from the resolution, it is useful to understand the underlying factors and reposition the sector to avoid the same mistakes in the years ahead.
Let me be upfront and say that though the failure of the two banks was due to significant capital deficiencies, the underlying reason was poor corporate governance practices within these institutions.
In this instance, we saw the dominant role of shareholders who exerted undue influence on management of the banks, leading to poor lending practices.
This was also reinforced by weak risk management systems and poor oversight responsibility by the boards of directors.
Some of the examples of recklessness that led to the failure of the two banks include:  Co-mingling of the banks ’ activities with their related holding companies.
For instance, one bank was paying 9 | P a g e royalties for the brand name, even at the a that the bank’s financial performance was abysmal and could not pay dividends.
As a result, the international institution placed a notice on its website abrogating all relationships with the Bank and this led to most of the foreign lenders cutting off their credit lines to the Bank and recalling their credits thereby creating serious liquidity squeeze to the bank.
 Also, very high executive compensation schemes were being operated by the affected banks which were not commensurate with their operations.
 Non-Executive Directors of the banks compromised their independence and fiduciary duties to serve as checks on Executive Directors.
This was because rewards such as business class air tickets were being granted to them annually.
10 | P a g e  Interference by Non-Executive Directors in the day- to-day administration of the banks weakened the management oversight function of executive directors .
Some non- Executive Directors were also acting as consultants to the same banks with no clear mandate, which gave rise to conflict of interest situations.
 Diversion of funds to holding companies and their related parties was wide-spread.
 Irregular board meeting also accounted for the weaknesses in the board oversight.
11 | P a g e  In all of these cases, one thing was clear, and that is, the banks could not delineate themselves from their past practices as finance houses.
They followed the same practice of borrowing from high net worth persons at a very high costs without any plans to bring themselves in line with the industry norm.
Certainly, it is for these numerous reasons that the central bank is seeking, among others, to enhance corporate governance practices as well as risk assessment frameworks across all banking institutions.
This will contribute significantly to improve overall performance as well as the reputation of banks and credibility of the entire financial sector.
Upholding the highest ethical standards and professionalism in the performance of our supervision function cannot escape my watch going forward, and I demand same from you all.
We shall employ an appropriate mix of both on- site supervision and off-site surveillance to implement the Risk Based Supervision Framework .
The Bank’s supervision examiners have built capacity on the subject and 12 | P a g e will assess banks’ risk management framework s for effectiveness, responsiveness and timeliness in dealing with risks, deploying resources and in protecting depositors’ funds.
Among others, these directives will focus on oversight responsibilities of the Board of Directors and bank management, prioritize risk management systems, and ensure independent audit roles, among others.
In particular, the guidelines will impose the tenure of Chief Executive Officers and Non-Executive Directors of banks, the size of bank Boards, the retiring age for Directors and disclosure of attendance at Board meetings by Directors in annual accounts.
These initiatives are underscored by the fact that banks need sound corporate governance practices to build public trust and confidence, as well as operational credibility.
Without these, banks stand the chance of eroding public trust and ultimately jeopardizing shareholders investments and depositors’ funds and most importantly weakening economy activity.
13 | P a g e 24.
Another guideline which will strengthen corporate governance structures in the banking sector is th at on financial publications .
The guide for financial publications seeks to ensure that International Financial Reporting Standards (IFRS) are adopted in the preparation and presentation of financial statements.
It also seeks to clarify and provide direction as well as bring uniformity in the financial reporting proce ss across the industry.
Financial institutions must embrace these efforts with a strong 14 | P a g e internal governance culture committed to the highest standards of integrity, transparency and proper controls.
Madam President, in the year ahead, our banks will be Basel II/III compliant .
Following the passage of the BSDI Act, 2016 (Act 930), the Bank of Ghana has reviewed existing directives and regulations to align with the Act.
Consequently, the Bank will ensure strict adherence to the Guide for Financial Publication and the BSDI Act particularly with regard to publication of financial statements (both audited and unaudited), and other regulatory breaches.
15 | P a g e 30.
In view of this, we shall start reviewing banks’ capital build-up plans for compliance to the directive and assist banks which would consider the option of mergers and acquisitions.
Currently, we are reviewing the governing legislations on the credit reference and collateral registry systems.
16 | P a g e 33.
I have requested in my last quarterly meeting with the Chief Executives of Banks, detailed plans on how each bank will resolve its non-performing loans on a loan by loan basis.
We shall enforce our directive on loan write-off going forward, and require appropriate disclosure of written-off facilities in the published financial statements of banks.
It is our expectation that the national identification program coupled with the improved economic prospects would support these measures and help in reducing the incidence of loan defaults in the banking sector.
In the coming year, Madam President, crisis management would be a more concerning issue, more especially the crisis response capacity of banks.
17 | P a g e 36.
To ensure the safety and soundness of individual banks, our risk focus supervisory frameworks will gauge cross sectoral interactions among financial players.
To this end, we shall continue to engage other regulatory bodies, both domestic and external, and share information and experiences.
The Bank in order not to stifle innovation and also create the enabling environment drafted the Payment Systems and Services Bill to replace the existing Payment Systems Act 2003 (Act 662) and the Guidelines for Electronic Money Issuers (2015).
The 18 | P a g e Bill is expected to enhance electronic banking, agency banking, and payments and also provide support for a strong and resilient banking sector.
I have noted that banks have formed various strategic alliances with Mobile Money Operators (MMOs) and financial technology firms to transform the way banking products are delivered.
Through these partnerships the unbanked are able to purchase Government debt through the use of mobile phones, receive inward remittance on mobile device and link bank accounts to mobile money wallets for access to micro- loans.
The top 5 banks holding these float as at October 2017 included Fidelity Bank, Ecobank, CAL Bank, Stanbic Bank and HFC Bank.
The Bank of Ghana is reviewing its licensing procedures when lower tier institutions such as savings and loans 19 | P a g e companies want to migrate to banking institutions.
We will impose swift sanctions to individuals and institutions that infringe or breach our regulations.
Your motto of Honesty and Integrity needs to be jealously guarded to positively project the profession of banking.
20 | P a g e 43.
Madam President, on this note let me thank you for the attention and wish you all compliments of the coming festive season.
WELCOME ADDRESS DELIVERED BY DR ERNEST ADDISON GOVERNOR, BANK OF GHANA AT BANK OF GHANA 60TH ANNIVERSARY LECTURES AND EXHIBITION AT KEMPINSKI HOTEL, ACCRA ON AUGUST 18, Your Excellency, the President of the Republic of Ghana, Your Excellency, the Vice President of the Republic of Ghana, Distinguished Invited Guests Board of Directors Colleagues and Staff Ladies and Gentlemen 1.
I deem it a great pleasure and honour to welcome you all to this important ceremony which climaxes the celebration of 60 th Anniversary of the Bank of Ghana—a significant milestone which is intertwined with the rich history of Ghana’s independence.
This indeed calls for both celebration and sober introspection.