Bank of Ghana Embraces Risk-Sensitive Regulation to Future-Proof Banking Sector

The Governor of the Bank of Ghana, Dr. Johnson Asiama, has unveiled a new regulatory direction focused on risk sensitivity and a system-based supervisory model to better shape Ghana’s banking landscape.

Speaking at a post-Monetary Policy Committee (MPC) meeting with CEOs and senior executives from the country’s commercial banks, Dr. Asiama emphasized that the shift isn’t just about ensuring compliance—it’s about building a banking system that is agile, accountable, and resilient to future challenges. The meeting, held at Bank Square, also featured key officials from the central bank, including First Deputy Governor Dr. Zakari Mumuni.

A New Regulatory Focus

Dr. Asiama outlined several strategic pillars that will guide the central bank’s regulatory approach in the coming months:

• Proactive Risk Management: In response to a reported 5.0% increase in fraud incidents and a 13.0% rise in value at risk, the Bank of Ghana will leverage data analytics and early warning tools to identify and mitigate emerging threats. Stronger internal controls and enhanced oversight will be central to this effort.

• Strengthening Digital Resilience: As digital banking continues to expand, the central bank will push for greater accountability from financial institutions regarding cybersecurity, product reliability, and consumer protection. Banks will also be encouraged to invest in digital security and increase public awareness through financial literacy campaigns.

• Boosting Governance and Compliance: Dr. Asiama underlined the need for robust governance structures and a deep-rooted culture of compliance within banks. To this end, compulsory training on Basel III and IV standards may be introduced for all bank directors to bolster regulatory understanding and effectiveness.

• Partnership and Skills Development: Emphasizing collaboration over enforcement, Dr. Asiama called for joint efforts between regulators and banks to develop sustainable oversight strategies. Capacity building—especially in areas like credit risk management and reputation safeguarding—will be a top priority.

The Governor reiterated the Bank of Ghana’s dedication to strengthening the financial sector, ensuring it remains stable and prepared to tackle evolving risks in an increasingly complex global financial environment.