Dr. Johnson Asiama (M) with some Heads and officials of Banks
The Governor of the Bank of Ghana (BoG), Dr. Johnson Asaima, has urged banks to develop robust cyber security systems and invest significantly in the security features of banking products in order to deal with emerging fraud.
The Governor who made the call during his maiden meeting with heads of banks at the Bank Square in Accra said though the Central bank welcomes innovation in the banking sector, banks should assume greater responsibility for the safety of their systems and product integrity.
He said, “We must build digital resilience, we welcome digital innovation, but it must be pursued with discipline and matched by robust cyber security, operational resilience, and governance, product integrity, and customer protection”.
Dr. Asiama stressed that such robust systems would help deal with fraud as new operational and systemic risks emerge on fraud and crime due to digitalisation and financial interconnectedness.
The Governor also asked the banks to expand public financial education, alert customers swiftly on emerging fraud issues and act swiftly under cyber security directive.
Dr. Asiama also asked the banks to renew its shared commitment to a stable, inclusive, and innovative financial system that protect the most vulnerable, embraces responsible technology as well as expand access across geography and income.
He also stated that the Central bank would also focus on risk identification and mitigation systems put in place by the banks to enhance the use of data analytics and early warning indicators that will identify emerging risks in terms of asset quality, cyber security, fraud, liquidity, or systemic buildup of nonperforming loans.
The Governor, for instance, stated that the 2024 fraud Report revealed a 5% increase in fraud cases and a 13% rise in value at risk, reinforcing the urgency of stronger internal controls and oversight.
According to him, despite the shocks and challenges recorded during the financial sector clean-up and the Domestic Debt Exchange Programme (DDEP), the banks have been resilient regained traction to help support the country’s financial stability.
He further indicated that as the banks makes efforts to deepen reforms and reposition the financial sector for the future, it was important for the banks to reflect on how they could do more to drive Ghana’s economic transformation especially in the area of trade facilitation and regional integration.
“We expect stronger support especially from foreign-owned banks for trade finance, cross-border payment infrastructure, and platforms like PAPSS,” he said.
The Bank will engage with the sector to develop coordinated, practical solutions that improve transaction efficiency, expand export support, and enhance Ghana’s competitiveness in regional and global trade,” he noted.
Dr. Asiama added that the bank will also focus on governance and compliance, sustainable oversight while building capacity for future challenges recognizing the unfamiliar risks that will be posed by AI in finance, climate shocks, geopolitical volatility among others.
By Ebenezer K. Amponsah