ghananlpcommunity/ghana-gov-speeches-sentences huggingface dataset:
In addition, the regulatory and supervisory frameworks will b e enhanced , while bank’s risk management systems are closely monitored to ensure stability and prevent undue stress from the macroeconomic environment and debt exchange.
President, Ladies and Gentlemen, despite the current daunting challenges, let us remain hopeful that the Ghanaian economy will bounce back as we prepare to ring in a new year.
On this note, Distinguished Ladies and Gentlemen, let me wish you all compliments of the season and a Happy and Prosperous New Year in advance.
STANDARD CHARTERED DIGITAL BANKING, INNOVATION AND FINTECH FESTIVAL 2022 REMARKS BY DR.
MAXWELL OPOKU-AFARI FIRST DEPUTY GOVERNOR BANK OF GHANA “ON HOW THE BANK OF GHANA IS PIONEERING AND LEADING NEW INNOVATIONS AND RELEVANT POLICIES TO MAKE GHANA A DIGITIZED ECONOMY” 26TH OCTOBER 2022 MOVENPICK AMBASSADOR HOTEL, ACCRA His Excellency , the Vice President of the Republic of Ghana, Dr .
Mahamudu Bawumia, The Board Chair of Standard Chartered Bank Ghana, Dr.
Emmanuel Kumah, The Chief Executive Officer of the Ghana Stock Exchange, Ms.
Abena Amoah, The Chief Executive Officer of Standard Chartered Bank Ghana, Ms.
Mansa Nettey, Executives of Banks, Other Financial Institutions, payment service providers, Captains of Industry, Distinguished guests, Ladies and Gentlemen.
It is a pleasure to deliver these remarks on “ how the Bank of Ghana is pioneering and leading new innovations and relevant policies to make Ghana a digitized economy,”.
It is also heartwarming to note that following calls by participants at the first edition of this festival in November 2021, Standard Chartered Bank has kept the momentum and thus today’s gathering, marks the 2nd edition of the Standard Chartered Digital Banking, Innovation & Fintech Festival .
I am truly honoured to be a part of this journey and permit me to congratulate the CEO and staff of Standard Chartered Bank Ghana for their outstanding work.
A prominent mile marker was in the 2003, when the Payment Systems Act 2003 (Act 662) was passed and set in motion the promotion of electronic payments in Ghana.
This law provided the mandate to establish the Ghana Interbank Payment and Settlements Systems (GhIPSS) which coupled with sustained investments in the interbank payments infrastructure, has proven to be a potent stimulant of retail payment innovation in Ghana.
Observing developments eastward, the Bank issued the Branchless Banking Guidelines to usher into Ghana, the mobile money concept.
Th is guideline sought to anchor the emergin g concept of mobile money on the resilience and safety of the banking sector .
Further , and in line with the dictates of regulatory innovation development, the Bank developed a policy framework in concert with industry and key stakeholders to introduce the Electronic Money Issuer (EMI) Guidelines.
This has provided a conducive legal and regulatory environment to promote mobile financial services, which in turn; has catalyzed the growth of an emerging ecosystem of smaller payment service providers in Ghana.
Ladies and gentlemen, to further capture the promise of a growing payment ecosystem, the Payment Systems and Services Act, 2019 (Act 987) was passed to provide a comprehensive framework for managing the sector, including the mandate to bring the fast-evolving payment service startups, popularly known as the “FinTechs”, under the regulatory ambit of the central bank.
The Bank , in line with our risk -based approach, has since dev eloped a comprehensive licensing regime which carefully examined and calibrated the requirements of each license category to be commensurate with the risks presented by their permissible activities.
It also sought to address the reality that some accommodation needs to be made for smaller entities and indigenous Ghanaian service providers.
Ladies and Gentlemen, t o fulfill the mandate in the National Payments Infrastructure Roadmap, the Bank of Ghana in collaboration with the Ministry of Finance, Ministry of Communications and other relevant stakeholders have been working rigorously together to set the foundational digital infrastructure base of the economy in place.
The ongoing sim -card registration exercise being championed by the National Communi cation Authority which has our full support, will ensure the centralization of KYC data to boost delivery of financial services devoid of fraud, theft and opportunities for money laundering and financing of terrorism.
The consumer should be at the center of our collective efforts.
As such, the Bank will not relent on its effort to protect them.
It is in this vain that the Bank of Ghana has developed an artificial intelligence powered automated customer complaint system, I believe this community refers to it as a chatbot; dubbed ‘Akushika’.
This customer experience solution is being deployed as an additional mechanism , to manage consumer complaints and promote consumer protection.
The chatbot is currently in its pilot phase and I would like to use this opportunity to encourage you all to interact with it to ensure that it becomes fit for its purpose.
Ladies and Gentlemen, in anticipation of our future role as a central bank within a digital economy, we set out to explore the possibility of introducing a central bank digital currency called the eCedi through a comprehensive pilot testing process that has just ended.
The pilot saw the testing of online and offline versions of the e Cedi in Accra, Tarkwa and Sefwi Asafo.
The pilot h as unearthed useful insights on the impact of the initiative of the Bank which will prove instrumental in the event of a full-scale deployment of the eCedi.
Further to building a safe payments ecosystem as well as promoting innovation, the Bank of Ghana launched the Regulatory Sandbox on the 19th of August 2022 , to support responsible innovation , innovations currently unregulated and immature, and nurture new b usiness models.
The design of the sandbox framework enables small scale, live testing of innovative financial products, services and business models by eligible financial service provider s and start-ups in a controlled environment under the supervision of the Bank of Ghana.
The sandbox will among others, enable the Bank to understand the risks these innovations pose to the digital payments ecosystem to better mitigate them.
It also has the added advantage of potentially reducing the go to market time frame for innovators.
To build stronger collaboration and cooperation with industry, Bank of Ghana has embarked on an engagement drive through the FinTech and Innovation Office.
In fact, the Bank has already started collaborating with FinTech Accelerators, Technology Hubs, and has facilitated various sessions on licensing requirements, corporate governance and compliance for reporting institutions.
This further demonstrates the Bank’s openness and engaging attitude towards industr y players.
The Bank encourages continual dialogue and is ready to engage all stakeholders to achieve our shared goals to promote innovation and a safe payments ecosystem.
While much has been collectively achieved, there’s a lot that needs to be done in building our future economy.
Let me use this opportunity to re assure players in the digital financial service ecosystem that Bank of Ghana remains resolute in our commitment to the cash-lite agenda.
I also encourage you all to take advantage of the opportunities that Bank of Ghana has presented to the space to encourage innovation.
I do hope this summit affords us all a forum to build on the successes achieved and to help to set new goals.
1 21ST ANNUAL NATIONAL RCB CEOs CONFERENCE ‘POSITIONING RURAL BANKING AT THE CENTRE OF FINANCIAL SERVICES DELIVERY IN GHANA - THE ROLE OF STAKEHOLDERS’ REMARKS BY MRS.
ELSIE ADDO AWADZI SECOND DEPUTY GOVERNOR BANK OF GHANA 14TH OCTOBER 2022 VOLTA SERENE HOTEL, HO 2 Mrs.
Comfort Owusu, Executive Director, National Association of Rural Banks, Ghana, and Chairperson for this occasion Board Chairman, Board Members, and other Officials of the Board of ARB Apex Bank Executives of the Association of Rural Banks, Ghana Chief Executive Officers and Managing Directors of Rural and Community Banks (RCBs) Officials of the Ministry of Trade and Industry Officials of RDF Ghana, sponsors of this Conference Officials of the Ghana Deposit Protection Corporation Mr.
Yaw Sapong, Head of the Other Financial Institutions Supervision Department of the Bank of Ghana and his team Mr.
Victor Akakpo, Bank of Ghana Regional Manager for Hohoe, and his team Invited Guests, Distinguished Guests, Ladies, and Gentlemen 1.
I am honoured to address you today as Guest of Honour for this 21st Annual National CEOs’ Conference.
I bring you warm greetings from Governor Ernest Addison and the Management team of the Bank of Ghana.
Engagements with the rural banking community over the decades have been of significant importance to the Bank of Ghana, given the critical role the indust ry plays as a driver for rural and community economic empowerment, financial inclusion, and inclusive economic growth and development.
Over the years, the RCB CEOs’ Conference has provided a unique forum for collaboration, knowledge sharing, and brainstorming to promote the interests of the rural and community banking industry as well as to strengthen standards of practice in the RCB community.
This year, this conference is taking place at a crucial era in the global economy as well as in our domestic economy, with the fallout from the COVID -19 pandemic and the recent Russia -Ukraine war.
Against the backdrop of a slo wdown in global economic growth and accommodative fiscal and monetary policies, we have seen high rates of inflation, high interes t rates, and tighter financing conditions all around the world.
For our domestic economy, RCB customers have been some of the hardest hit by the pandemic and its aftermath.
This has implications for credit risk and overall financial performance of the indu stry.
The role of the RCB industry in our economy has been significant, providing critical financial services to the MSME sector, the informal sector, and low-income households.
Indeed, the RCB sector currently comprising 147 RCBs, remain one of the key pillars of financial inclusion in Ghana with some 8 million depositors and over 6 million loan customers.
The sector encompasses a network of about 900 branches across the country including in some of the remotest parts of Ghana where no other financial service providers can be found .
RCB business models continue to evolve from the initial business models pioneered in 197 6 when the first RCB licences were issued by the Bank of Gh ana, and are increasingly gradually embracing automation, and strong governance and risk management.
There is however more room for improvement for the RCB sector to be strategically positioned to play a more significant role in their catchment areas and in Ghana’s sustainable economic transformation .
The theme for this Conference “Positioning Rural Banking at the Centre of Financial Services Delivery in Ghana – The Role of Stakeholders” could therefore not have been more apt.
To reposition the RCB sector, it is important to take stock of its performance over the last almost five decades of its existence, to assess what has worked and what has not worked well.
The sector has several strengths such as the strong participation of communities and local stakeholders in the ownership and governance of RCBs which provides strong local support and goodwill for their businesses.
Some of these RCBs have operated in their communiti es for decades and have become key players in shaping the destinies of these communities, providing a source of financing for generations of families of businesses.
It is also important to situate the strengths of the RCB sector within the rapid changes taking place in the financial services industry all around the world and here in Ghana.
For a start, technology is fast disrupting traditional business models for delivering finance all around the world and is redefining financial services as we knew them.
Digital financial services are now the future, and are creating opportunities to reach existing customers and the previously unbanked in cost-effective ways.
This also means that universal banks are now able to reach communities and people with their services much easier and cheaper than they previously could, and thereby competing with the RCB sector on your own turf.
At this rate, any financial institution that has not already adopted and implemented a digital transformation strategy is already behind the curve.
The RCB sector therefore cannot afford to wait much longer before it begins to leverage emerging technologies to modernise their business models to meet the fast -changing needs of their customers and to remain relevant to the segment of the economy that was traditionally served by the sector.
It is noteworthy that under the ongoing Financial Sector Development Project, the Ministry of Finance and Bank of Ghana have agreed among other things to support the upgrade of the ARB Apex Bank’s e‐banking platform and the modernisation of the Management Information Systems of RCBs to help make their operations more efficient and to reach more customers with their services.
I appeal to all RCBs to cooperate with the ARB Apex Bank in its roll-out of this new infrastructure for the benefit of your customers.
Digitalisation comes along with its own complexities and risks, including cyber security risks, third and fourth party/outsourcing risk, data privacy breaches, technology failure risk, increased AML/CFT risks, and consumer protection risk among others.
Needless to say, a lot is required by way of strong governance and risk management systems to help mitigate these risks, as financial institutions seek to exploit the benefits of digitalisation.
RCBs will therefore need to augment their capital base as needed in order to deploy more sophisticated systems and structures in line with the Bank of Ghana’s 2018 Cyber and Information Security Directive.
The Directive provides for the adoption of minimum technical, governance, data protection protocols, and transaction monitoring and fraud detection and mitigation tools, to help mitigate key risks from digitisation.
A second key area the RCB sector needs to look closely at in its quest to reposition itself , is governance.
Several RCBs are yet to fully comply with the Bank of Ghana’s 2021 Corporate Governance Directive for Rural and Community Banks.
The Directive seeks to promote higher standards of corporate governance and risk management to help strengthen the safety, soundness, and resilience of RCBs and u ltimately the safety of their depositors’ funds and our financial system.
Good corporate governance is a shared responsibility for all key stakeholders.
Shareholders of RCBs are required to contribute adequate capital to fund their banks’ operations, and must appoint directors who meet the Bank of Ghana’s Fit and Proper test and can effectively steer the affairs of their banks.
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RCB Boards of Directors must take their oversight responsibilities under the law very seriously.
Let me remind you that m embership of a Board of an RCB, or other entity for that matter, is not for personal prestige.
It carries a significant burden of personal and collective responsibilities and liabilities.
Among other things, Board members must put in place strategic plans that ar e well executed by management with appropriate risk management, transparency, and accountability.
The Bank of Ghana finds it worrying that it continues to receive many petitions from whistle -blowers alleging serious acts of impropriety involving directors and senior management of RCBs.
We expect that these would be a thing of the past as RCB fully comply with the Corporate Governance Directive.
Staff members are expected to ensure high levels of utmost good faith in the discharge of their duties.
The Bank of Ghana’s 2021 Fraud Report for the b anking sector revealed that the RCB sector recorded the highest level of employee involvement (46.04%) in fraud cases, due to poor internal controls among other things.
Staff found culpable are blacklisted by the Bank of Ghana from working in the banking Industry.
We expect that RCBs will continue to strengthen their internal controls and promote high standards of legal and ethical behaviour by staff.
A third key area that I believe the RCB sector must take seriously as it works towards repositioning, is the adoption of sustainable banking practices.
In November 2019, the Bank of Ghana launched Ghana’s Sustainable Banking Principles, in collaboration with the Ghana Association of Bankers and the Environmental Protection Agency after years of research, study tours, and technical work with the support of the International Finance Cooperation .
Universal banks are already implementing these principles that require them to manage Environmental, Social, and Governance (ESG) risks in their operations.
Among other things, RCBs must use their lending power to promote cleaner and more environmentally sustainable ways of doing business in their various communities, and promote social inclusion through lending to women, youth, and other marginalised groups, so that no one is left behind.
They must also reflect ESG principles in their internal policies to reduce their own carbon footprint, and to promote more gender diversity in their leadership.
Permit me here to say that I am quite dissatisfied to hear from Madam Chairperson for this occasion that there are currently only 10 female CEOs among the 147 CEOs representing the sector.
Where are all the women?
Gender equity in leadership will have immense benefits for the sector and for your customers.
It is not only a good thing to do; it is also good for business, and so this is clearly one area in which we need to see some change.
Madam Chair, d istinguished ladies and gentlemen, recent global developments have heightened economic and business uncertainties for businesses and individuals.
Our domestic economy is not spared from these developments.
The Bank of Ghana is working closely with the Ministry of Finance and other key stakeh olders to negotiate a sound economic reform programme supported by the IMF, to stabilise and transform our economy.
We at the Bank of Ghana are confident about the outlook for our economy.
The current high inflation and cedi depreciation are temporary, and we must avoid speculative behaviour that only works against attaining stability sooner.
The potential of the RCB sector to scale up its operations and impact is significant.
Among other things, digitisation, stronger governance and risk management, an d sustainable banking practices will be key to help reposition the sector as a major player in Ghana’s economic transformation going forward.
Developing a vibrant rural banking sub -sector capable of harnessing available resources for development requires the commitment of all stakeholders.
The Bank of Ghana will continue to pursue policies and regulatory approaches to help improve the operational environment of the rural banking ecosystem which should in turn help to promote the resilience of the sector.
Let me once again thank RCBs, the ARB Apex Bank , and all stakeholders for your enormous sacrifices and contributions to Ghana’s economic development over the decades.
I challenge you all to do more to reposition rural banking at the centre of financial services delivery for inclusive and sustainable growth and development.
I wish you successful deliberations at this conference and thank you for your attention.
1 9 5 7 1 BANK OF GHANA REGULATORY SANDBOX ENGAGEMENT WITH STAKEHOLDERS OPENING REMARKS BY DR.
MAXWELL OPOKU-AFARI FIRST DEPUTY GOVERNOR BANK OF GHANA READ ON HIS BEHALF BY: MR.
KWAME AGYAPONG OPPONG HEAD, FINTECH AND INNOVATION OFFICE BANK OF GHANA 5TH OCTOBER 2022 MOVENPICK AMBASSADOR HOTEL, ACCRA BANK OF GHANA ES T.
1 9 5 7 2 Executives of the Associations and Chambers present, Members of Industry, Distinguished guests, Ladies and Gentlemen.
It is a pleasure to address you at this Regulatory Sandbox stakeholder engagement forum.
I am particularly pleased about the heightened interest among industry stakeholders in this major strategic initiative of the Bank of Ghana as evidenced by the massive presence of various financial service providers, FinTech startups and other financial sector regulators.
On a special note, I would like to thank the CGAP and ICAG for your participation today.
The boundaries of financial service are becoming increasingly blurred and therefore behooves regulators and other technical and professional institutions to collaborate to promote a safe and efficient financial service industry.
The emergence of new technology has fueled the digitalisation drive in the Ghanaian financial service industry with tremendous impact on efficiency and convenience .
Significant strides have been achieved in the mobilissation of granular transactions, deployment of user -centric designs, delivery of affordable services and improved accessibility with phenomenal beneficial impact on financial inclusion .
Ghana’s recent remarkable performance in financial inclusion from 58% in 2017 to 68% in 2021 as reported in the 2021 Global Findex has been largely facilitated by digital financial service.
Although this achievement is worth celebratin g, a lot remains to be achieved.
We are however assured, based on the BANK OF GHANA ES T.
1 9 5 7 3 inclusion trajectory, that digitalisation has been a competent tool and we will continue to leverage it.
To meet the changing needs of customers as well as address the challenges of the industry calls for pragmatic and innovative solutions that confront the status quo.
This, we consider a shared responsibility of the regulator and the innovators to create a conducive environment for experimentation.
This approach, though useful, has its own risks; and if not properly directed, could be disastrous to society.
A laissez-faire attitude to innovation and financial service delivery is therefore an unsuitable approach to accommodate.
For this reason, Bank of Ghana has created a properly guided enabling environment, through the introduction of its Regulatory Sandbox.
The Regulatory Sandbox has been designed for innovators to test innovative financial products, services and business models in a controlled but live environment; and rightfully so, under the supervision of the Bank.
The stakeholders’ engagement forum therefore presents a further opportunity to have an ongoing collaboration with industry to explore our different perspectives and to work towards a common goal, which is the welfare of society.
Now, don’t get me wrong.
My reference to societal welfare is not diametrically opposed to the cherished profit incentive of private enterprises.
I am aware, and indeed expect you , to make profit to justify your existence and investment.
Nevertheless, meeting the needs of society is an essential condition to profit making.
You all stay in business when you solve societal problems BANK OF GHANA ES T.
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I must state that innovation and retooling of regulatory framework are not new to the Bank of Ghana.
In fact , the Bank has been at the forefront of innovation in the financial service industry for decades .
In the not too distant past, precisely in 2003, the Payment Systems Act 2003(Act 662) had in its preamble the promotion of electronic payments and set the stage for the establishment of GhIPSS and the many investments in the interbank payments infrastructure that have laid a strong foundation for digital financial service in Ghana.
Since then, many more innovations and corresponding enabling regulatory regime h ave been provided, of which Act 987 is the most recent .
Clearly, these and many commitments, including the regulatory sandbox are evidence of the Bank’s response to the prevailing industry dynamics and encourage stakeholders to take advantage of the opportunities Bank of Gh ana has presented to inject some dynamism into their offerings through innovation.
Let me underscore the importance of responsible innovation in this endeavor.
Globally, sustainability has taken centre stage in a ll spheres of human activity.