my estimation involves continuous monitoring and evaluation of the risk profiles of banks in relation to their business strategies and exposures. this assessment will be facilitated by the construction of a risk matrix for each institution, and thus creates the room for focused supervision in relation to available resources. ladies and gentlemen, this will in no small way help to optimize the synergies from the different activities, including the regulatory and supervisory functions, and ultimately enhance substantially, the overall efficiency and effectiveness of the supervisory process. mr. chairman, the current shift in focus is in line with the introduction of the new basel capital accord ( basel ii ) to include operational risk. this puts further emphasis on supervisory review process and market discipline, which borders on transparency and full disclosure of financial information. these are intended to provide clear bases for effective management of risks and allocation of capital to cover them with the view to making safe and sound institutions. at the appropriate time, and that is possibly by end 2009, we would adopt basel ii. in addition to these intended changes, mr chairman, another development worth mentioning is the adoption and implementation of international financial reporting standards ( ifrs ), which presents a uniform basis for recognition, classification and measurement of financial assets and liabilities and the related income, and expenditure of financial institutions. in ghana, consultations have started between the bank of ghana, the institute of chartered accountants and the banks to determined those aspects that affect banks and how to implement them to suit our local conditions. ladies and gentlemen, it is not hard to see that this shift in focus of regulation and supervision will demand a change in management strategies in both the supervisory authorities and the banks. in particular, the effectiveness of the risk based supervision would invariably depend on banks'preparedness in certain critical areas, such as quality and reliability of data, soundness of systems and technology, appropriateness of risk control mechanism, supporting human resources and organisational back - up. mr. chairman, in my estimation, the above will obviously require the banks to re - orient their organisational set up to put in place efficient risk management architecture, risk focused internal audit, strengthening of the management information system, and set up compliance units. a successful transition to risk based supervision cannot do without the above and obviously make them imperative. mr. chairman, for this change to be effective in containing and managing risk, it has to be implemented throughout the whole sub - region in order to avoid contagion due to the current trend of financial integration within our sub

abdul - nashiru issahaku : effectively communicating economic and financial developments in ghana during 2016 remarks by dr abdul - nashiru issahaku, governor of the bank of ghana, at a press soiree, held at the bank of ghana to commemorate the end of the year, accra, 28 december 2016. * * * good afternoon. 1. on behalf of the board of directors and management, l would like to express our profound gratitude to you members of the press for the collaboration we have had during the year. as effective communication is necessary to ensure that the monetary policy transmission is not unduly impaired, we are very grateful for your support. 2. as you are aware, the inflation targeting framework involves expectation management to ensure that inflation is anchored. hence, the effectiveness of monetary policy has become more and more dependent on steering expectations of future interest rate policy. and no other policy tool plays this role better than effectively communicating the policy decision and the considerable efforts made in arriving at that decision. it is for this reason that we try to be clear and open about our actions and operations. 3. on the policy front, our efforts at sustaining macroeconomic stability continue to yield dividends. thanks to continued fiscal restraint and the tight monetary policy stance, we have been largely able to anchor 2 inflation expectations while the economy is becoming more resilient to external shocks. 4. as you are aware, the ghana cedi has remained broadly stable during the year and we are optimistic that the cumulative depreciation for the year will remain in the single digits. this stability in the ghana cedi has reduced the pass - through to domestic inflation, although inflation is still above target. we therefore need to sustain the macroeconomic stability to anchor expectations and to build shock absorbers in the face of continued volatility in the global economic and financial environments. 5. let me mention the establishment of our new communications department, which has assumed such a strategic role in our communication functions. as a department within the bank, the goal is to proactively support the mandate of the bank in ensuring price stability and ultimately contributing to economic growth. therefore, the work of the department is to promote monetary policy communication as well as economic development communication. i want to urge you to continue to work with them in seeking feedbacks on the various aspects of our operations. 6. in an effort to further promote effective public accountability, we have just introduced a 24 - hour contact centre. this offers the general