A Deputy Director of Banking Supervision at the Bank of Ghana (BoG) Ismail Adam has underscored the need for banks to engage in responsible lending.

According to him, banks must consider the sustainability of the banking environment when advancing loans. He was speaking at an industry engagement on sustainable banking principles organized by the BoG.

The BoG, in partnership with the Ghana Association of Banks (GAB) organized the capacity building training for industry players to delve deeper into the principles of sustainable banking. The training also provided industry players with the opportunity to collaborate and promote development.

In an interview, Mr. Adam said banks must ensure that their lending practices have a positive impact on the environment.

“There’s the need for banks to engage in responsible lending and manage their lending activities such that you have the sustainability of the environment in mind. The banks are aware that when they are engaging in lending practices, they need to look at the impact on the environment”, he mentioned.

The Chief Executive of the Ghana Association of Banks, John Awuah encouraged the bankers to adhere strictly to the seven sustainable banking principles to help maintain confidence in the sector.

The seven sustainable banking principles are critical in managing risks effectively.

These principles serve as a reference framework for banks, financial institutions, and stakeholders to integrate sustainability into their operations, risk management, and decision-making processes.

The sustainable banking principles encourages banks to engage with their stakeholders to promote resource efficiency, sustainable consumption and production by involving stakeholders, including customers, employees, and local communities in  decision-making processes, create products and services that align with their values and contribute to sustainable development