The Governor of the Bank of Ghana, Dr. Johnson Asiama, has announced a move towards risk-sensitive regulation and a system award model for overseeing the banking sector.
He explained that this approach is aimed not just at enforcing compliance but at shaping a banking system that is agile, accountable, and future-ready.
Dr. Asiama shared these insights during a meeting with Heads of Commercial Banks at the Bank Square, following the recent Monetary Policy Committee meeting. The gathering included chief executives or representatives from Ghana’s regulated banks, as well as officials from the Bank of Ghana, including 1st Deputy Governor Dr. Zakari Mumuni.
Key Focus Areas for Regulation
The Bank of Ghana’s Governor outlined several key focus areas for the upcoming regulatory framework:
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Risk Identification and Mitigation: A key priority will be using data analytics and early warning indicators to identify emerging risks, particularly given the 5.0% increase in fraud cases and a 13.0% rise in value at risk, as reported in the 2024 Fraud Report. Dr. Asiama emphasized the need for stronger internal controls and oversight.
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Digital Resilience: The central bank will ensure that banks take greater responsibility for the safety of their systems, product integrity, and customer protection, urging banks to invest significantly in product security and expand public financial education.
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Governance and Compliance: Dr. Asiama highlighted the importance of effective governance, compliance culture, and accountability across all levels of banking institutions. He also mentioned the possibility of compulsory Basel III & IV training for all bank directors to improve regulatory knowledge and governance.
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Collaboration and Capacity Building: The Governor stressed the importance of collaboration in co-creating solutions rather than merely enforcing rules. Additionally, the central bank will prioritize capacity building for future challenges, focusing on sustainable oversight, especially in credit risk and reputational exposure.
Through these reforms, Dr. Asiama reaffirmed the Bank of Ghana’s commitment to enhancing the banking sector’s stability and resilience in the face of evolving risks.
