Bank of Ghana institutes measures to enhance corporate governance in banks

Bank of Ghana2The Bank of Ghana (BoG) in a bid to strength 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.

Mr Nathaniel Arthur, chairman of the Board of Directors of the bank, announced that it made a net profit before tax of an amount of GH₵2,712,309.71 as at December 2014,  as against GH₵1,095,535.27 in 2013, representing an increase of 148 percent.

He said during the period under review, the bank’s total deposits stood at GH₵49 million, representing an increase of 16.39, as against GH₵42.1 million in 2013,  saying that the economic situation had effect on the bank’s deposit mobilization.

Total advances disbursed under the lending programme in 2014 was GH₵36.4 million as against GH₵30.5 million in 2013 presenting a decrease of 19 percent, while in the same period investment stood at GH₵19.8 million against GH₵14.9 million representing 33 percent.

On assets, the Director indicated that it increased by 17.81 percent from GH₵49.4 to GH₵58.2 million in 2014.

In a speech read on his behalf, Mr Kwadwo A. Kusi, Managing Director of the ARB APEX Bank Limited congratulated the bank for an impressive performance and expressed his bank’s readiness to offer training for the staff, management and board to ensure availability of skilled personnel at all times.

Mr Kusi encouraged the shareholders buy more shares and endeavour to re-pay the loans to enable others benefit from it.

Source: GNA

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