The Governor of the Bank of Ghana (BoG), Dr Ernest Addison, has urged commercial banks to tackle the structural vulnerabilities threatening the stability of the banking sector.
At the 28th National Banking and Ethics Conference on November 21, organised by the Chartered Institute of Bankers, Dr Addison emphasised the importance of responsible banking practices based on strong ethical standards. He called on the industry to prioritise integrity and accountability in all operations.
Further, Dr Addison also revealed that the Central Bank is incorporating Business Model Analysis (BMA) into its supervisory framework to proactively identify and address risks that could undermine the sector’s long-term sustainability.
“Bank failures rarely occur overnight. Structural vulnerabilities develop over time, and if ignored, they can make a bank’s operations unsustainable,” he said.
Moreover, he also mentioned that the BoG has released an exposure draft outlining a methodology for evaluating banks’ business models, which it will finalise for adoption soon. This strategy will make bank supervision more proactive, forward-looking, and effective.
Additional, Dr Addison concluded by stressing that addressing these challenges requires a comprehensive, systemic approach to ensure the long-term soundness and sustainability of the banking sector.
