The Bank of Ghana (BoG) is urging banks to tighten their governance structures to prevent another financial crisis. Speaking at the Corporate Governance Series, Sandra Thompson, Special Advisor on Corporate Governance at BoG, emphasized that board oversight is crucial in safeguarding the financial system.
Thompson highlighted that the governance landscape has changed, and boards are now seen as guardians of financial stability, not just stewards of individual banks. The BoG is concerned that poor governance could lead to economic repercussions, citing the 2017 banking crisis that resulted in significant losses.
The BoG has been implementing reforms to strengthen governance, including enforcing fit-and-proper criteria for board members and key management personnel, setting limits on related-party transactions, and requiring enhanced internal controls and risk management frameworks.²
