BoG urges FIs to uphold corporate governance practices

Governor of the Bank of Ghana, Dr. Ernest Addison, has reiterated the need for the financial sector to uphold good corporate governance practices to enhance efficiency.

According to him, corporate governance plays an important role in the financial sector as it helps to create a strong banking sector and enhance their financial intermediary role in supporting the economy,

Speaking when the Institute of Directors-Ghana (IoD-Gh), paid a courtesy call on the Governor of the Bank of Ghana, Dr. Ernest Addison, and the management of the Bank, Mr. Addison pledged the Bank’s support for the work of the Institute especially as events in the banking sector has a rippling effect on the Ghanaian economic sector.

Corporate governance breaches, overbearing shareholder behaviour and related party transactional breaches as some of the factors that led to the failure of some banks in the financial sector and their consequent resolution and there is the need to avoid them,” he said.

Speaking on the strategic projects of the IoD-Gh,  Dogbegah said his outfit is developing a charter aimed at setting standards for the practice of Corporate Governance in Ghana. He indicated that the development of a National

Governance Code was another key strategic project to be undertaken by the Institute,” he said.

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He spoke about the Institute having established the ongoing annual Corporate Governance Excellence Awards; as part of its strategic efforts to celebrate the achievements of outstanding individual personalities and corporate organizations that have represented excellence in leadership, corporate governance, and have made significant contributions to the socioeconomic development of Ghana.

The Institute is also working in collaboration with key stakeholders and championed the formation of the Ghana Association of Integrated Thinking and Reporting which is aimed at stimulating a strategic and sustainable way of value creation and reporting by organisations,” he added.

The visit was to commend the Bank for its significant role in promoting the culture of good corporate governance in Ghana and to seek mutually beneficial relationships between the Bank and the Institute.

The Institute of Directors-Ghana indicated that it was ready to execute a Memorandum of Understanding with the Bank to foster a sustainable relationship between the two entities.

Present with the President of the Institute of Directors-Ghana at the meeting were the Vice President, Rev. Angela Carmen Appiah, the CEO,  Fred Aryeetey, and Belinda Dede Tandoh and Kwame Amoako, Esq., Council Members.

In the Governor’s team were the First Deputy Governor, Dr. Maxwell OpokuAfari, Second Deputy Governor, Mrs. Elsie Addo Awadzi and The Bank’s Secretary, Ms. Sandra Thompson.