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Bank of Ghana Governor Dr. Ernest Addison on Tuesday urged banking institutions to implement effective cyber risk management policies to secure and safeguard their systems against potential cyber attacks.
He said that the digitization of banking systems would erode if adequate investments were not made for the effective protection of information technology and security infrastructure.
Dr. Addison testified at the 24th national banking conference organized by the Chartered Institute of Bankers (CIB) of Ghana on the subject; “The Changing Banking Landscape: Take Advantage of the Impact of COVID-19 to Prepare for the Future.”
He said BoG had implemented policies such as consumer recourse mechanism guidelines, product disclosure and transparency rules, as well as a cybersecurity directive to promote operational efficiency in the sector.
He charged banks with investing in digital banking platforms to improve financial inclusion, adding that fintech would be a game changer in the sector to meet customer needs.
Dr. Addison said that the use of digital and mobile banking platforms to conduct banking transactions had increased since the COVID-19 outbreak and that banks had responded positively to these changes by deploying sophisticated and user-friendly digital platforms with disruptions. minimal.
He said the BoG is ready to support banks and all actors in the digital space to operate ethically and responsibly.
The governor of the BoG urged banks to implement a solid corporate governance system to improve their operations efficiently and effectively to be competitive in the business world.
“Corporate governance should not be handed over only to senior management and the board of financial institutions, it should be integrated into the entire organizational structure and exemplified through the daily professional conduct of all employees,” he said.
He said that rapid changes in weather conditions require that the future of the banking business be tied to sustainable principles.
He highlighted that without a proper assessment of social and environmental risks, bank-financed climate-related projects can be adversely affected, which can translate into other risks such as project completion risk, credit default risk and reputational risks.
He commended the Bankers Association and bank directors for the corporation and compliance with regulatory relief measures to help mitigate the impact of the COVID-19 pandemic.
The BoG, it said, had issued guidelines on the prudential treatment of loan restructuring and loan repayment waivers that banks would provide to ensure smooth implementation of regulatory waivers.
Patricia Sappor, President of CIB-Ghana, said that in May 2020, KPMG’s Ghana Banking Sector Report projected that as a result of the adverse effect of COVID-19, the country’s oil revenue target was expected to fall by 53%.
The report revealed that the reduction in the tourism sector was expected to result in a potential loss of revenue of around $ 170 million, while hotel occupancy rates have dropped from 70% to less than 30%.
In addition, the Bank’s fee income from money transfer services, collection of school fees and loans to the education sector has been negatively affected according to the report.
Ms Sappor said that these issues had led banks and financial service providers to design innovative, tailor-made products and services that meet customer needs and ensure their sustainability.
He said the financial industry had successfully overcome the immediate weights of the COVID-19 emergency, adjusting its working models to drive competition and strength.
Source: GNA
