The Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, has called for the incorporation of ethical behaviour into the operations of the banking sector. He made this call at the 60th anniversary launch of the Chartered Institute of Bankers Ghana on Wednesday, 13 September 2023.
Ethical banking: a necessity for the banking sector
Dr. Addison stressed that the absence of ethical standards in the banking sector poses risks to all stakeholders, including shareholders and depositors, and can ultimately destabilise the entire financial sector, with adverse effects on the economy. He cited the recent banking sector clean-up exercise, which resulted in the revocation of licenses of some banks and other financial institutions, as an example of the consequences of unethical practices.
He said that ethical banking is not only a moral obligation, but also a business imperative, as it can enhance the reputation, performance, and sustainability of banking institutions. He added that ethical banking can also foster customer loyalty, trust, and satisfaction, as well as attract socially responsible investors.
Ethical banking: a shared responsibility for all stakeholders
Dr. Addison shared several ideas for the banking sector to consider during the anniversary celebrations. He emphasised that banking institutions should prioritise ethical leadership at all levels, invest in ethics training and education for employees, develop comprehensive codes of conduct, establish robust whistleblower protection programs, promote transparency in financial transactions, and incorporate sustainability and responsible banking principles into their operations.
Furthermore, Dr. Addison highlighted the importance of strict adherence to regulatory requirements and collaboration with regulators, as well as rewarding ethical behavior and regularly evaluating and updating ethical frameworks and practices. He emphasised that ethical banking should consider the interests of all stakeholders, including shareholders, employees, customers, and society at large.
Ethical banking: a vision for the future of the banking sector
Dr. Addison further stated that by redefining professionalism in banking through ethics, financial institutions can regain the trust of customers, investors, and the public. This, he noted, in turn, can contribute to a more stable and resilient financial system that serves the best interests of society.
He assured that the Bank of Ghana remains committed to providing the necessary frameworks to ensure ethical and sustainable banking practices. He also commended the Chartered Institute of Bankers Ghana for its role in promoting professionalism and ethics in the banking sector.
He congratulated the institute on its 60th anniversary and urged it to continue to uphold its vision and mission.
