The Bank of Ghana has reiterated that it remains fully committed to its supervisory role and will ensure that all financial institutions adhere to regulatory requirements and guidelines to foster trust and confidence in the sector.
According to the Governor of the Bank of Ghana, Dr. Ernest Addison, Central Bank has been engaging with regulated entities regularly over governance and assurance functions, in its quest to remain vigilant to ensure stability of the financial sector.
Speaking the 20 Anniversary Celebrations of Opportunity International Savings and Loans, he said strong risk management, compliance with prudential rules, proper internal audit functions remain crucial to ensure that regulated financial institutions operate soundly, safely, ethically and within regulatory and legal boundaries.
“Issues such as poor credit underwriting standards, high-risk clients, weak risk management procedures, inadequate monitoring systems, and other factors have all contributed to the increased Non-Performing Loans (NPLs) in the subsector over the last few years. I must commend the Board, Management and Staff of Opportunity International of scoring high marks and setting high standards in its Corporate Governance. We urge other Boards and Managements of the savings and loans subsector to emulate the good corporate governance practices of Opportunity Savings and Loans”, he pointed out.
Looking ahead, the Governor said the financial landscape will undoubtedly continue to evolve, and savings and loans companies should be well-positioned to adapt and navigate these changes.
“Technological advancement has broadly shifted banking operations to digital platforms on mobile devices. Savings and loans companies’ subsector can therefore take advantage of these new platforms through collaboration with banks and telecommunication companies to broaden their scope of operations and service offerings to the benefit of our economy. They must however be aware of the issues of cybersecurity and operational risks that arise therefrom. Cyber-attacks such as malware, phishing scams and ransomware attacks can disrupt operations, compromise systems and affect data integrity”, he explained.
Savings and Loans urged to take advantage of FICSOC
“We encourage Savings and Loans Companies to take advantage of the Financial Industry Command Security Operations Centre (FICSOC) set up by the Bank of Ghana to address these cyber security risks”, the Governor continued.
“As a leader in the financial sector, paying attention to the issue of sustainability, climate-related financial risk and green finance presents a strategic opportunity. Let me therefore take this opportunity to encourage the Board, Management and Staff of OISL to pay close attention to issues of sustainability, climate-related financial risks, and green finance which has become part of the global agenda. Presently, there are existing opportunities such as green funding to support lending activities within the banking system”, he mentioned.
The Bank of Ghana has recently issued a draft Directive on Prudential Disclosures of Climate Related Financial Risks, “And I urge you to review and comply with the recommendations under the directive.
The Governor also applauded Opportunity International for empowering the ambitions of its customers by providing them with financial solutions and training.
This, he said, is in line with Bank of Ghana’s policy imperative of financial inclusion, with the policy focus on providing access to basic financial services, allowing people to carry out basic banking functions.
“For two decades, your customers have trusted you to finance and provide them with access to several financial services. Today, we celebrate the consistent dedication and resilience that have shaped this institution into the financial powerhouse it is today. I therefore congratulate the Board, Senior Management, and staff for this great feat”.
ALSO READ;
Ablakwa urges SSNIT to adopt Labadi Beach Hotel’s turnaround strategy for…
Hands off our Hotels demo: Ablakwa officially presents petition to govt