The Bank of Ghana (BoG) is embarking on a transformative shift towards a risk-sensitive regulatory model designed to future-proof the country’s banking sector. The announcement was made by Governor Dr. Johnson Asiama during a meeting with heads of commercial banks at the Bank Square, as part of the central bank’s regular engagement following Monetary Policy Committee (MPC) meetings.
According to Dr. Asiama, the central bank’s objective is not solely about enforcing compliance, but about “shaping a banking system that is agile, accountable, and prepared for the future.” He emphasized that this new regulatory direction is proactive and collaborative, prioritizing both innovation and resilience.
Key Focus Areas for the New Regulatory Model
1. Risk Identification and Mitigation
A primary step in this regulatory evolution is the early identification and mitigation of risks. The BoG will increasingly rely on data analytics and early warning indicators to detect emerging risks in the banking system. This move comes in response to the findings of the 2024 Fraud Report, which revealed a 5.0% rise in fraud cases and a 13.0% increase in value at risk, signaling the need for more robust internal controls.
Dr. Asiama stressed the urgency of stronger oversight mechanisms and internal safeguards within financial institutions to counter these rising threats.
2. Digital Resilience
Another central pillar of the new framework is building digital resilience. Banks are being encouraged to take greater responsibility for the security of their digital platforms, the integrity of financial products, and the protection of customer data. The Governor urged institutions to invest in advanced product security features and intensify financial education for the public to bolster trust and reduce digital vulnerabilities.
3. Governance and Compliance
Improved governance is also at the heart of the regulatory revamp. The BoG will strengthen its supervisory oversight in areas such as board effectiveness, compliance culture, and accountability at all levels. Notably, Dr. Asiama disclosed that the central bank is considering mandatory Basel III and IV training for all bank directors to deepen their understanding of regulatory expectations and enhance governance standards.
4. Collaborative Engagement
Dr. Asiama also highlighted the need for greater collaboration between the BoG and financial institutions, stating that “solutions should be co-created rather than simply enforced.” The central bank aims to foster an environment where banks are active participants in shaping regulatory standards and frameworks.
5. Sustainable Oversight and Future Capacity
The Governor concluded by stressing the importance of building capacity for future challenges and prioritizing sustainable oversight. Special attention will be given to credit risk, reputational exposure, and the broader implications of climate and ESG-related risks.
The Bank of Ghana’s shift towards this risk-sensitive, forward-looking regulatory approach represents a major evolution in how the country supervises its banking sector, aiming to foster stability, innovation, and long-term resilience.
