Governor of the Central Bank, Dr Ernest Addison, has noted that his outfit stands ready to implement fresh measures to contain expected Covid-19 shocks in the banking sector.
His assertion follows growing concerns that the full impact of the pandemic on the banking sector is yet to be realized as well as an anticipated second wave of the Covid-19 pandemic.
But speaking at the 2020 annual dinner of the Chartered Institute of Bankers Ghana, Dr Addison noted the BoG is in a better position to deal with the challenges when they arise.
“Going forward, the financial sector will require constant regulatory and policy attention to mitigate the risks. The economic impact of the pandemic may result in higher non-performing loans and some capital erosion of banks. The Bank of Ghana is putting greater focus on identifying the early warning signals and initiating prompt corrective action,” the Governor said.
Dr Addison commended banks in the country for their positive response to the BoG’s monetary policy actions and regulatory relief measures.
“Madam President, the banking industry deserves commendation for the positive response to the Bank’s monetary policy actions and regulatory relief measures. Following the announcement of the measures, Banks have provided various reliefs to customers through reduction in lending rates, granted moratoria on loan repayments, restructured existing facilities, and advanced new loans to customers,” he said.
“Broadly, these actions have helped moderate the economic impact of COVID-19 on customers and minimised the potential disruptions in credit flows. There is no doubt that these responses have contributed significantly to the much faster pace of economic recovery than anticipated,” he added.
In a related development, President of the Chartered Institute of Bankers, Patricia Sappor, at the annual dinner launched the Ghana Banking Code of Ethics.
The code of ethics is to ensure best banking practices in the country and also aimed at reducing fraud cases in the banking sector as well as boost risk management practices.
Read below details of Governor Addison’s speech at the 2020 Chartered Institute of Bankers annual dinner: