The Bank of Ghana has charged banks to be consciousness on techniques together with risk control, innovation, stakeholder engagement, transparency and disclosure and collaboration to be able to stay resilient in time of uncertainty.
Overall, the regulator say, sustainable banking is a essential device for addressing problems of uncertainty and volatility in the international economy. Deputy Director of Banking Supervision, Ismail Adam, stated through integrating Environmental, social, and governance (ESG) standards into banks` decision-making processes, banks can create long-time period value for society and investors,
whilst promoting sustainable and equitable future. Speaking on the release of the Integrated Environmental, Social and Governance (IESG) programme for Ghana, he stated one of the main problem facing the banking sector is uncertainty and volatility of markets and economies,
However sustainable banking can assist deal with those challenges through promoting risk control with a forward-searching view, in assisting to create resilient and sustainable economies. He added that the Bank of Ghana has undertaken some steps in that direction of the implementation of the SBPs and consequently it’s his expectation that this venture could supplement the efforts of the Central Bank and results in the whole implementation of the SBPs throughout the banking sector in addition to Bank of Ghana itself.
Some key steps undertaken by BOG consist of building the ability of workers on the SBPs in addition to getting a dedicated office to supervise the whole implementation SBPs, developing a master plan to ensure banking system training on all the standards by 2023 and analysing four rounds of report obtained from the banks, starting March 2021 to September 2022.
Mr. Adam stated the reporting templates obtained from the banks endorse a regular development with the implementation of the SBPs with compliance at 53.37% as of September 2022.
The programme builds on two preceding IFC programs in collaboration with the Bank of Ghana that culminated in the release of Ghana`s Sustainable Banking Principles in 2019.
All Ghanaian banks have now signed directly to the standards, thereby recognizing that a holistic technique to risk control need to consist of ESG considerations.
