Second Deputy Governor of the Central Bank, Elsie Awadzi Addo, has said the practice of good corporate governance by banks in the Covid-19 era will differentiate between banks that are able to properly navigate risks brought about by the pandemic and those that will not be able to do so.
Delivering the open remarks at the Bank of Ghana/Bank of England Regional Event themed Governance as a tool for Microprudential Supervision, Mrs Awadzi-Addo stated good corporate governance in the banking sector has always been critical in promoting the safety, soundness, and resilience of the banking sector, and by extension, trust, and confidence in the industry.
“As the pandemic rages on, good governance will make the difference between firms that will ride the storm because they managed their risks effectively, and those that may falter,” intimated the Second Deputy Governor.
Speaking further, Mrs Awadzi-Addo noted good regulation and supervision of banks in the county by the Central Bank must constantly assess the adequacy of rules that promote good governance in the industry as well as assess the quality of governance in each regulated institution and make the right judgment calls as to remedial action that is needed to correct poor governance.
In a keynote address during a webinar organized by the Ghana Association of Bankers (GAB), Governor of the Central Bank, Dr Ernest Addison, posited some risks due to the advent of the novel coronavirus pandemic have been introduced into the country’s banking sector.
The risks, he pointed out were cyber security, credit and operational risks. In view of that, the Governor called on banks to implement effective risks management policies to mitigate the potential adverse impacts of the Covid-19 induced risks.
The Bank of Ghana/Bank of England Regional Event boasts of 113 registered participants from 16 African Central Banks, two regional bodies (WAMI and WAIFEM), and the IMF’s AFRITAC West II Office located in Accra.
