Dr. Ernest Addison, Governor of the Bank of Ghana (BoG), has emphasised the pressing need for a reinforced focus on ethics within the financial sector.
In an address at the 27th National Banking and Ethics Conference organised by the Chartered Institute of Bankers, Ghana, he noted that the annual fraud reports concerning Banks, Specialized Deposit-taking Institutions (SDIs), and Payment Service Providers (PSPs) serve as a compelling signal for heightened attention to ethical behavior.
Dr. Addison underscored the far-reaching consequences of a single fraud case involving a financial institution employee, noting its potential to adversely impact the entire industry and erode public confidence. Although the 2022 fraud report indicated a decline in staff-involved cases to 188 from 278 in 2021, the persistence of unethical acts, primarily related to cash theft and fraudulent withdrawals, remains a concern.
The Governor, represented by Mr. Bernard Otabil, Head of the Ethics and Internal Investigations Office at the Bank of Ghana, stressed the imperative to educate and instill ethical behavior among financial institution staff. He advocated the elevation of awareness on ethical issues, the provision of ethical training for banking professionals, and the cultivation of a robust ethical culture within these institutions.
Dr. Addison highlighted the importance of empowering banking professionals with the knowledge and skills to navigate complex ethical dilemmas and address ethical blind spots. Furthermore, he detailed the Bank of Ghana’s commitment to monitoring and enforcing ethical conduct among regulated institutions, exemplified by its internal Ethics and Compliance Programme.
Five years ago, the Bank established the Office of Ethics and Internal Investigations to reinforce good governance and promote the highest standards of ethical conduct aligning with the Bank’s mandate. The BoG’s Code of Ethics and Ethics Policies serve as the cornerstone for ethical decision-making within the institution. Additionally, distinct ethics rules and standards have been crafted to guide bank supervisors and examiners, acting as safeguards against ethical misconduct.
Dr. Addison emphasised that ethics training is mandatory for every Bank of Ghana employee and an integral part of the performance management system.
He expressed optimism that collaborative efforts among stakeholders in the banking industry will significantly enhance the ethical conduct of all staff, contributing to the restoration and preservation of trust and confidence within the sector.
The Governor urged an unwavering pursuit of ethical business practices, advocating a collaborative approach involving every individual within financial institutions.
He encouraged each bank to cultivate a values-driven culture, agreed upon by both leaders and the leadership team, to serve as a constant reference within the institution’s systems and processes.
Dr. Addison believes that a values-based and values-driven culture will not only align stakeholders’ values with those of the bank but also foster a strong ethical organisational culture that enhances professionalism within the industry.
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