CENTRAL BANK CALLS ON BANKS IN GHANA TO IMPROVE RISK MANAGEMENT SYSTEMS

ACCRA, The Bank of Ghana has called on banks in the coutry to improve the quality of their risk management systems, corporate governance and internal control practices.

Grace Akrofi, the Special Adviser to the Governor of the central bank, said here Wednesday that with the implementation of sound risk management practices, banks would be able to assess and set aside the appropriate capital needed for inherent operational risks as required under the capital requirement directives and the global Basel ll and III framework.

Speaking at the launch of the Royal Bank’s fifth Anniversary celebrations, she said the BoG would also ensure that the banks complied with the international financial reporting standards (IFRS). “This is to guarantee uniformity in the presentation of financial accounts and accompanying notes to financial accounts,” she added.

She said the new minimum capital requirement offered valuable opportunities for consolidation within the banking industry and she encouraged small and under-capitalised banks with corporate governance challenges among others to merge and consolidate their operations.

She said the BoG was of the view that there were more benefits to be gained from consolidation, hence, its bias in encouraging mergers in the industry.

Akrofi said the consolidation process was expected to lead to emergence of big banks to help finance high-valued projects that would be transformative for the economy.

Source: NAM NEWS NETWORK

   

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