Bank of Ghana institutes measures to enhance corporate governance in banks

The Bank of Ghana (BoG) in a bid to strengthen the country’s financial institutions, has instituted measures to enhance good corporate governance, Mr Raymond Amanfu, Director and Head of Other Financial Institutions Department of the BoG, has announced at Shama in the Western Region.

As a result, the BoG had developed Corporate Governance Regulations that would be applicable to all entities regulated by the bank.

He said some of the measures include limits on tenure of directors, possession of certain competencies for directorship, provision of opportunities for induction and training of directors, installation of a good internal control and internal audit and compliance systems.

Mr Amanfu was addressing the 27th Annual General Meeting of Shareholders of the Lower Pra Rural Bank Limited at Shama and said “ we hope the implementation of these regulations would enhance the performance of boards and their banks”.

He urged the boards and managements to identify the various risks their banks were exposed to, and formulate strategies to mitigate them, while advising on the measures to be in place to achieve the minimum capital.

Mr Amanfu impressed on external auditors of Rural Community Banks to be more diligent, and ensure that auditing staff did not engage in conflict of interest situations.

“The BoG would not hesitate to report the conduct of auditing firms to the institute for redress if they are found wanting”, the Director warned.

He, however, stressed the need for external auditors to be rotated every six years in accordance with the BoG directive.

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