BoG warns of cybersecurity threat, misinformation
The Governor of the Bank of Ghana (BoG), Dr Ernest Addison, has warned that despite the banking sector's robust performance, emerging risks like misinformation and cybersecurity threats could pose serious challenges if not proactively managed.
Citing the recent cyberattack on the Bank of Uganda which resulted in offshore hackers stealing 62 billion Ugandan shillings ($16.8 million) from the central bank, he said “we must remain vigilant. Horizon risks—like misinformation and cybersecurity threats, are lurking around the corner, and we need to deal with them almost as soon as they emerge.”
The Central Bank in its Monetary Policy Committee statement in November 2024, said notwithstanding an elevated non-performing loans (NPL) profile, the banking sector remains sound, well capitalised and liquid.
It said the banking sector continued to record improvements in performance with total assets growing by 42.4 percent to GH¢367.2 billion at end-October 2024, compared to 3.2 percent at end-October 2023.
Dr Addison who was speaking at the Chartered Institute of Bankers, Ghana (CIB’s) Governor’s Day event held in Accra on the theme: “Resilience in the Financial System: Navigating Horizon Risks”, highlighted the sector's current strength, noting that despite past crises, Ghana’s banks are showing strong asset growth and profitability.
He attributed this resilience to the recapitalisation efforts made last year, which ensured that most banks had adequate resources going into subsequent crises.
Governor’s Day
The event which climaxed the activities of the year 2024 brought together industry leaders and stakeholders to hear the Governor’s reflections on the year and guidance in the following year.
As part of the event, 23 senior executives across the banking sector were inducted after completing the Chartered Banker for Executive Leadership Programme while seven charted bankers were awarded fellowships, with three of them being females.
It also saw the investiture of three honorary fellows who have made significant contributions to the banking industry and Institute.
Reforms
The Governor walked through the cycles of crisis and reform that have shaped Ghana's financial landscape, from the structural adjustment era of the 1990s to the banking clean-up exercises of the last decade.
"Ghanaians had not seen a banking crisis of that magnitude in a long period of time. People were shocked when the licenses of two major banks were revoked. But that clean-up was essential to strengthen the system and bring in new capital requirements," he said, reflecting on the reforms.
He further explained how economic crises such as the currency depreciation and the subsequent International Monetary Fund (IMF) intervention—spilled over into the banking system, driving non-performing loans and instability.
However, he emphasized that the banking sector's resilience has been evident in its ability to navigate these challenges through necessary reforms and recapitalisation.
Advise
Reflecting on his career and offering advice to young bankers, the Governor encouraged perseverance and dedication.
“You have chosen a career, and you should be faithful to that path. Stay focused and do your best in everything you do, and you will see the results. Don’t waver or get distracted by doing a bit of this and a bit of that,” he advised.
He also urged the banking sector to continue innovating and adapting to the growing challenges of the modern economy, especially in the areas of digital finance, data privacy, and sustainable banking.
The Chief Executive Officer (CEO) of CIB Ghana, Robert Dzato, highlighted the institute’s achievements, such as the successful roll-out of Environmental, Social, & Governance (ESG) certification and ethics certification for bankers.
Looking ahead, he said the institute plans to strengthen its collaboration with BoG and other stakeholders to promote ethics in banking and enhance financial literacy programmes across schools.