Second Deputy Governor of the Central Bank, Elsie Addo Awadzi, has said banks in the country are expected to be proactive in assessing and managing Covid-19 related emerging risks in the banking sector.
The emerging Covid-19 related risks in the banking sector, as noted by Dr Ernest Addison a keynote address during a webinar organized by the Ghana Association of Bankers (GAB) include cyber security, credit and operational risks.
Speaking at the same webinar, Governor Elsie Awadzi posited that banks in line with relevant provisions of the Banks and Specialised Deposit-Taking Institutions Act of 2016 and the Corporate Governance Directive of 2018, are expected to mitigate the emerging risks.
“The Bank of Ghana expects the banking industry to be proactive in assessing and managing these risks in line with relevant provisions of the Banks and Specialised Deposit-Taking Institutions Act of 2016 and the Corporate Governance Directive of 2018,” she stated.
“We expect banks to establish and constantly strengthen risk management structures, policies, strategies, and processes in keeping with the fast evolving business environment. Importantly, we also expect that effective risk management becomes embedded in the business culture of banks, supported by strong management information systems for controlling, monitoring and reporting risks,” she added.
According to her, the ability of banks to identify, measure and mitigate the emerging risks remains critical to maintaining the financial and operational resilience of the industry, the stability of the financial system and stability and recovery of the economy.
Adding the Central Bank will remain vigilant in monitoring risks faced by banks and explore effective means to help keep risks faced under control.
“As regulators, we will remain vigilant in monitoring the risks faced by the banking industry. We continue to explore effective means to carry out our mandate to help keep risks in the industry under control. On your part, the industry must ensure that capital buffers built over the last couple of years are preserved, operational resilience is maintained, and depositors’ funds are protected, while continuing to support economic growth as far as the strength of banks’ balance sheets would allow,” she said.
