ghananlpcommunity/ghana-gov-speeches-sentences huggingface dataset:
Capital Adequacy Ratio, adjusted for the regulatory reliefs, was 13.4 percent in October 2023, higher than the revised prudential minimum of 10 percent.
However, the industry’s NPL ratio increa sed to 18.3 percent in October 2023, from 14.0 percent in October 2022, attributable to elevated credit risk associated with the lagged effect of the macroeconomic crisis in 2022.
OUTLOOK 23.
Now, Ladies and Gentlemen, permit me to share the outlook to the economy more broadly from the perspective of the Central Bank.
The direction of recent macroeconomic indicators has given some positive signals of a gradual turnaround in the economy.
This follows the 11 implementation of sound macroeconomic policies, successful completion of the domestic debt restructuring, and a wide range of structural reforms.
Indications are that sustained policy efforts are needed to firm up the emerging stability and growth.
One of such policy efforts is the Bank’s Domestic Gold Purchase Programme (DGPP) which was launched in June 2021.
With the DGPP, the Bank started converting a domestic asset into a foreign asset through the purchase of locally produced gold in local currency and converting same into monetary gold.
The objective is to rebuild reserves, stabilise the foreign exchange market, and in turn, suppo rt the disinflation process.
The first leg of DGPP is the Gold for Reserves (G4R) transactions initiated by the Bank to augment foreign reserves with a view to double gold holdings in the foreign exchange reserves within five years.
Since its inception, the Bank has purchased 17.89 tons of gold, equivalent to US$1.14 billion, which has more than double d the level of the central bank’s gold reserves, well ahead of the initial target.
Besides the reserve buildup, the Gold for Oil (G4O) programme, another leg of the DGPP, has also helped to reduce the demand for US dollars by the Bulk Oil Distribution Companies (BDCs) who would otherwise have sourced forex from the market for the importation of petroleum products.
So far, a total of 14.23 tons (US$907 million) of gold has been purchased for barter payments for importation of petroleum product.
The G4O programme has also impacted the Bank’s cashflow, helped maintain stable ex-pump prices, fostered market confidence, and supported the local currency.
In addition to the improvements in the macroeconomic environment and the performance of the banking sector, the Bank has also worked to strengthen the regulatory and supervisory frameworks to improve overall resilience of the financial system.
Furthermore, the ongoing work of the Ghana Deposit Protection Corporation and the Financial Stability 12 Council will help to further strengthen the resilience of the banking sector and the protection of deposits.
Distinguished Ladies and Gentlemen, recent trends in the global regulatory developments mostly indicate that regulation is aimed at addressing emerging risks to the global financial system and facilitating the implementation of existing standards.
In particular, the BCBS issued standards on effective management and supervision of climate-related financial risks in June 2022.
Also, the International Sustainability Standards Board (ISSB) issued guidance on general requirements for disclosure of sustainability -related financial disclosures (IFRS S1) and climate-related disclosures (IFRS S2) in June 2023, all aimed at strengthening the disclosure and risk management function with respect to Climate-related financial risk.
Considering this, the Institute of Chartered Accountants Ghana has set up a Steering Committee, with Bank of Ghana serving as a member, which is presently working on the adoption and implementation of the IFRS-S1 and IFRS-S2 disclosure requirements.
In addition, the Bank of Ghana is developing a Directive on Climate-related Financial Risk Management.
Implementation of the Sustainable Banking Principles (SBPs) has steadily progressed with significant improvement in banks’ reporting and compliance rate.
Implementation of the Basel Capital Standards (issued in the 2018 notice on Capital Requirement Directive) has led to improvements in the quantity and quality of capital of banks.
The introduction of capital buffers was a critical source of cushioning to b anks against the impact of the pandemic and the more recent domestic debt restructuring.
The Bank will continue to roll -out the Basel II/III capital standards aimed at enhancing and sustaining the resilience of the banking sector.
Additionally, banks’ compliance with the Corporate Governance Directive issued in 2018 has helped improve the quality of oversight of banks and has largely stemmed failures in the banking system.
13 29.
Ladies and Gentlemen, despite the challenges during the year, we did not renege on our drive to embrace financial inclusion as a policy objective, recognizing its potential for broad based economic growth and poverty alleviation.
Accordingly, the Bank of Ghana continued to use its policy and regulatory tools to provide the enabling regulatory environment to promote digital financial services to the benefit of all economic actors.
Currently, there are 52 non -bank payment service providers who offer various forms of payment solutions to meet the increasing expectations of consumers.
To further advance fintech activities, the Bank successfully engaged market players such as banks, DEMIs, PSPs, and MTOs in the inward remittance termination space to identify issues and implement policies and measures associated with inward remittance termination se rvices to ensure a level playing field for all market participants.
Additionally, the Bank launched the first cohort of its Regulatory Sandbox to support innovations in the areas of new digital business models not currently covered explicitly or implicitly under existing regulation but have the potential to address a prese nt financial inclusion challenge.
Also, surveillance and investigations into activities of illegal lending applications have commenced with the identification of over 200 loan apps offering unapproved and unlicensed lending products to the Ghanaian consume r. In response, two separate public notices were issued in August 2022 and July 2023 to warn financial institutions to patronise only Bank of Ghana approved digital credit products.
To this effect, the Bank continuously engaged Google’s Regulatory and Policy unit, which facilitated the removal and barring of 200 loan apps from the Google Play Store.
Since then, Google has reviewed their Personal Loan Policy to restrict these lending apps from accessing device information including SMS and contacts.
In addition, the Bank, in collaboration with the Economic Organised Crime Office (EOCO), Cyber Security 14 Authority (CSA) Ghana, and the Ghana Police embarked on a swoop which led to the arrest of 420 individuals, including three (3) foreigners in July 2023.
Ladies and Gentlemen, after the successful eCedi pilot, the Bank recently organised the eCedi Hackathon to encourage and potentially leverage on the local CBDC innovation, exchange knowledge and build partnerships.
Out of 88 applications from students, programmers, FinTechs, bankers, engineers, and FinTech enthusiasts, etc., 66 were selected for the hackathon.
Of this, 10 finalists have been shortlisted to go into prototyping for the Pitch Day.
During this month, the Bank will hold a Demo Day for the finali sts to demonstrate their innovative solutions and a winner will be selected.
Indeed, the hackathon has garnered interest from stakeholders, including the international community, and it is expected that these innovators will not only offer solutions for the Ghanaian ecosystem, but also get the opportunity to network and attract investors.
Ladies and Gentlemen, over the years, most African central banks have devoted efforts at building and modernising their domestic payment infrastructures.
Today in Ghana, we have a robust and interoperable payment systems where our Real Time Gross Settlement Systems and the Natio nal Switch continue to provide the catalytic infrastructures needed in ensuring connected payment systems.
We have cards, mobile money wallets and bank accounts that are interoperable and have supported our instant payments.
The net result of these initiatives is evidenced by the increased speed, easy access, transparency, and reduction in cost of transactions.
Ladies and Gentlemen, in as much as the use of digital technologies continues to change the business models of our financial institutions, these digital technologies also are important sources of cyber risk among these institutions.
Cybersecurity risks can impair 15 operational capabilities and even threaten the viability of financial institutions.
To forestall such activities from weakening the digitisation drive, the Bank issued the Cyber and Information Security Directive in 2018 to create a secure cyber environment for banks and other Bank of Ghana -regulated financial institutions.
and ensure the delivery of a safe digital financial Industry.
Further to this, the Bank, in collaboration with other stakeholders, initiated the Financial Industry Command Security Operations Centre (FICSOC) project in November 2020 to address cyber risks on a broader level.
The FICSOC was formally launched in 2023 and serves as a threat intelligence -sharing platform designed for secure sharing and collaboration, as well as to facilitate the analysis and prioritisation of risks, the allocation of resources, and the understanding of threats tailored to each regulated financial institution and the banking industry.
Ladies and Gentlemen, u ntil 2022, however, the Ghanaian domestic payment system had not been directly linked to any of the other West African countries nor any African country for that matter.
This situation led to payment transactions meant for other African countries terminating outside the continent before reaching those countries which may be neighbours.
In 2020, the G20 Leaders endorsed the Roadmap for Enhancing Cross -border Payments, which provided the foundation for the Bank’s engagements and collaborations for development of cross border payments in West Africa.
Building on this roadmap, the West African Monetary Zone, through the support of Afreximbank’s Pan African Payment and Settlement Systems (PAPSS) linked the Real Time G ross Settlement Systems (RTGS) of member central banks.
This singular initiative was geared towards reducing the cost of transactions, improving access, and minimising the use of third currency for intra African trade.
16 37.
Additionally, through the Association of African Central Banks’ (AACB) Task Force on Payment Systems Integration and its two Working Groups, African central banks have pursued initiatives aimed at streamlining compliance to minimise cost of foreign exchange conversion as well as manage financial risks better.
To navigate the transition from regional to international digitisation, the AACB , through its Payment Systems Integration Task Force, has committed to ensuring harmonisation of payment and settlement s ystems regulations, building a Pan African Payment platform, and leveraging existing payment technologies.
Looking ahead, the Bank will continue to engage industry actors to develop forward - looking policy frameworks in the areas of Digital Banking and Open Banking.
Ladies and gentlemen, financial technologies can alter the financial sector landscape for the better and the Bank of Ghana remains committed to promoting innovation in the delivery of financial services and in this regard, will continue to monitor risks and opportunities for banks, payment service providers, and consumers to thrive in the digital financial ecosystem.
CONCLUSION 39.
In conclusion, President of the CIB, Distinguished Ladies and Gentlemen, let me assure you that the economy is on a gradual rebound.
Growth is improving steadily, inflation is declining, the fiscal and external positions are improving, alongside relative stability in the exchange rate.
Absent unanticipated shocks in the outlook, the continued implementation of prudent policies will further strengthen the recovery process and reinforce the disinflationary process.
These conditions will improve the operating environment for the banking sector to remain stable and strong to support the economy.
This notwithstanding, let me use this opportunity to once again assure the public that, on the back of the DDEP and other risks that may emerge in the banking sector, the Bank will 17 continue to closely monitor developments and, where need be, take appropriate and decisive actions to address same.
Also, the Bank will ensure that depositors’ funds remain safe, and that the financial system remains stable and resilient.
On this note, let me once again thank you all for your attention.
27TH NATIONAL BANKING AND ETHICS CONFERENCE ORGANISED BY THE CHARTERED INSTITUTE OF BANKERS, GHANA Keynote Address By Dr.
Ernest Addison Governor, Bank of Ghana Presented by: Mr.
Bernard Otabil Head, Ethics and Internal Investigations Office Bank of Ghana Accra International Conference Centre, Accra 14th November 2023 1 The President, Chartered Institute of Bankers, Ghana, Mr.
Benjamin Amenumey, The Founder and President, Ashesi University, Mr.
Patrick Awuah, The Chief Executive Officer, Chartered Institute of Bankers, Ghana, Mr.
Robert Dzato, Managing Directors of Banks, Management and Staff of Banks, Fellows and Associates of the Chartered Institute of Bankers, Ghana, Distinguished Guests, Ladies, and Gentlemen, 1.
Good morning and I welcome you all to the programme.
It is a pleasure that the Governance Council of the Chartered Institute of Bankers (CIB) has, for the second time in a space of two months, deemed it fit to invite me to deliver a keynote address.
First, was at the launch of the 60th Anniversary and for today, we have the 27th National Banking and Ethics Conference , under the theme, “Redefining Professionalism through Ethics.
This theme is apt and resonates with ongoing developments in the industry.
Ladies and gentlemen, the focus on professionalism and ethics being championed by the Institute inspires a lot of hope for the industry.
Indeed, the importance of ethical behaviour in banking and financial markets has never been as relevant as it is today because of the moral and economic efficiency issues involved.
This industry thrives on trust and the lack thereof threatens the stability and sustainability of the entire financial sector with adverse economic consequences.
As we all are aware, the core mandate of banks is financial intermediation, and any misconduct by industry players erodes public confidence and therefore proves detrimental to the entire sector, as was experienced here in Ghana some few years ago.
Banks are indispensable to economic growth and, therefore, have moral obligations to safeguard financial integrity in the interest of depositors and shareholders, and the economy at large.
The critical issues to focus on regarding the chosen theme include the ethical frameworks that guide banks policies and procedures, and the values that shape the actions of bankers .
Ladies and Gentlemen, this keynote address, therefore, will focus on building and maintaining an ethical culture that promotes and sustains ethical decision-making and good conduct in the banking sector.
To recall, at the launch of the 60 th Anniversary of the CIB, I gave an exposition on the importance of ethics within the banking sector and how to promote ethical leadership and embed ethical culture in our respective banking institutions.
The connection between ethics and the Environment, Social, and Governance (ESG) model was highlighted and supported by the gains banks have made in implementing the Ghana Sustainable Banking Principles.
Obviously, these feed into the vision of building a sustainable banking industry that is hinged on strong ethical and professional conduct in Ghana.
Distinguished Ladies and gentlemen , professionalism is an important pillar in banking.
The literature on banking and finance is replete with discussions on the critical role professionalism play s in the banking and finance business.
However, professionalism must not only be understood in the context of acquiring degrees or certificates but must also be viewed in the broader sense to include the attitudinal and behavioural conduct of individuals in their professions.
The educational certifications give 3 professions, not professionals.
Professionalism is governed by codes of ethics and commitment to values such as accountability, respect, self-regulation, honesty, and integrity on the job.
This shows that professionalism cannot exist without ethics.
Ladies and Gentlemen, being ethical is inherent in the concept of professionalism.
An expert in any field, particularly in banking and finance, w ith weak ethical values becomes an institutional liability.
For this reason, the Bank of Ghana collaborated with the CIB, Ghana, and the Ghana Association of Banks to launch the Ghana Banking Code of Ethics and Business Conduct, which reinforces provisions in the Chartered Institute of Bankers, Ghana, Act 2019 (Act 991).
The Code is expected to uphold the tenets of professionalism and promote strong ethical standards in the banking industry.
In addition to the Code of Ethics, the risk management approach in the banking sector should make room for the assessment and management of culture and conduct risks.
These risks are intertwined, and unethical behaviours are often associated with multiplicity of cultural factors which must be managed diligently, just like all other risks.
While the Bank of Ghana monitors proper ethical conduct among regulated institutions, it has also implement ed its own internal Ethics and Compliance Programme .
The objective is to entrench ethical culture among Bank staff to model the culture and ethical behaviour expected from a regulator of the banking industry.
Five years ago, the Bank established an Office of Ethics and Internal Investigations to strengthen good governance and promote the highest standards of ethical conduct commensurate with the Bank’s mandate.
This was part of the 4 commitment by the Bank to turn the tide of ethical drift into ethical lift to ensure that as regulators, we demand of ourselves the highest standards in the course of our work.
The Bank of Ghana’s Code of Ethics and Ethics Policies provide the framework for ethical decision-making and conduct within the Bank.
Separate ethics rules and standards have also been developed as a guide for bank supervisors and examiners as saf eguards from ethical misconduct in the line of duty.
These initiatives aim to build a strong and healthy organisational culture that would ensure that the Bank achieves its mandate based on sound ethical principles.
Ethics training is also a mandatory requirement for every Bank of Ghana employee and forms part of the performance management system.
Ultimately, it is expected that the joint efforts of stakeholders in the banking industry will go a long way to improve the ethical conduct of all staff working in the financial sector to uphold trust and confidence in the sector.
Ladies and Gentlemen, e thical business practice should be pursued relentlessly and aggressively by all industry players.
In doing this, we must adopt a collaborative approach, involving every individual in the institution, so that “doing the right thing” becomes embedded in the work culture.
Each bank must aim to create a values -driven culture, agreed on by both the leader and leadership team , which should serve as a constant reference within the bank’s systems and processes.
When the culture within the banking sector is values-based and values -driven, stakeholders, including depositors, w ould likely align their values to that of the bank.
By that, a strong 5 ethical organizational culture supported by ethical decision-making and conduct would emerge and enhance professionalism within the industry.
Ladies and gentlemen, t he Banks, SDIs , and PSPs Fraud reports, the Bank of Ghana issues yearly, give strong signals that our focus on ethics and ethical behaviour should be strengthened.
A single case of fraud, involving an employee of a bank or any financial institution, affects the whole industry and weakens public confidence in the industry.
Although the 2022 Banks, SDIs, and PSPs Fraud report showed a decline in staff involvement in fraud cases to 188 in 2022 from 278 in 2021, the persistence of these unethical acts among employees of Banks and SDIs remains a concern.
As reported, most of the incidents involving bank staff and had to do with cash theft (cash suppression) from customers’ accounts and fraudulent withdrawals on accounts of customers.
These trends show the need to educate and inculcate ethical behaviour among staff of financial institutions.
Raising awareness of ethical issues, providing banking professionals with ethical training, and fostering a culture of ethics are important building blocks to establishing the right culture within banking institutions .
This would also help banking professionals develop the knowledge and skills to navigate complex ethical dilemmas as well as anticipate and deal properly with ethical blind spots.
Ladies and Gentlemen, it is gratifying to note that, as part of today’s programme, the CIB will launch a newly redesigned flagship Chartered Banker (ACIB) curriculum and an ethics certification programme.
These new professional development programmes would help create 6 the required speciali sed knowledge and improve competency for the benefit of the industry.
But, more importantly, it would help banking professionals imbibe the right ethical values to contribute to building the right ethical culture in the various institutions.
Let me add that the ethics certification is for all employees working in the banking industry; and all bank staff must complete the certification programme and be recertified annually.
Fit and proper assessment for key management positions should also include ethics certification.
These are initiatives that the Bank of Ghana firmly supports.
I am also aware of the newly redesigned Chartered Banker qualification, which is relevant to all employees of banks.
To build a professional and sustainable banking industry, professional qualification, and continuous professional development for those working in the industry must be taken seriously.
Just as lawyers and doctors pursue approved courses of study, so must bankers.
This will ensure the sustainable development of the financial sector.
Finally, Ladies and Gentlemen, it is my fervent hope that the collective efforts, from the regulator, banking institutions and their association s, training institutions like CIB , and the individual bankers themselves, will help stem the tide of unethical behaviours and reduce the occurrence of ethical violations to the barest minimum, or eliminate them completely, to raise the levels of trust and confidence of the public in our industry.
World Bank/IMF Meetings - Marrakech, Morocco IMF-African Caucus Meeting Topic: Making Public Debt Useful for Sustainable Growth in Africa Speaker: Dr.
Ernest Addison Governor, Bank of Ghana Venue: Marrakech, Morocco Date: 10th October 2023 Thank you, Chair.
I appreciate the opportunity today to speak on behalf of my fellow Governors about making public debt useful for sustainable growth in Africa.
But let me first express my deepest commiserations to the authorities and the peoples of Morocco and Libya for the recent devastating tragedies that have claimed many lives, displaced many people, and destroyed properties , while appealing for urgent support from the international community.
Madam Managing Director , African economies are faced with acute debt challenges underscored by rising social and infrastructural needs , amid spillovers from the Covid-19 pandemic, the war in Ukraine, tightening of global financing conditions, and climate -related disasters.
Public debt in sub-Saharan Africa (SSA) has now reached levels last seen in the early 2000s.
The resultant increased debt service burden, together with complex creditor composition, has heightened risks to debt sustainability, to the extent that m ore than half of the SSA members are now in or at high risk of debt distress.