The Bank of Ghana has pointed out that the banking industry thrives on trust and the lack thereof threatens the stability and sustainability of the entire financial sector with adverse economic consequences.

According to the Central Bank, any misconduct by industry players erodes public confidence and therefore proves detrimental to the entire sector, as was experienced few years ago.

Speaking at the 27th National Banking and Ethics Conference organised by the Chartered Institute of Bankers, the Governor of the Bank of Ghana, Dr. Ernest Addison, said the focus on professionalism and ethics being championed by the Institute inspires a lot of hope for the industry and “Indeed, the importance of ethical behaviour in banking and financial markets has never been as relevant as it is today because of the moral and economic efficiency issues involved”.

He explained that banks are indispensable to economic growth and, therefore, they should have moral obligations to safeguard financial integrity in the interest of depositors and shareholders, and the economy at large.

“The critical issues to focus on regarding the chosen theme include the ethical frameworks that guide banks policies and procedures, and the values that shape the actions of bankers”, he stated.

While the Bank of Ghana monitors proper ethical conduct among regulated institutions, it has also implemented its own internal Ethics and Compliance Programme.

The objective is to entrench ethical culture among the Bank staff to model the culture and ethical behaviour expected from a regulator of the banking industry.

The Governor said five years ago, the Bank established an Office of Ethics and Internal Investigations to strengthen good governance and promote the highest standards of ethical conduct commensurate with the Bank’s mandate.

Governor advocates for aggressive pursuit of ethical business

He advocated for the relentless and aggressive pursuit of ethical business practice by all industry players.

“In doing this, we must adopt a collaborative approach, involving every individual in the institution, so that “doing the right thing” becomes embedded in the work culture. Each bank must aim to create a values-driven culture, agreed on by both the leader and leadership team, which should serve as a constant reference within the bank’s systems and processes”, he alluded.

“When the culture within the banking sector is values-based and values-driven, stakeholders, including depositors, would likely align their values to that of the bank. By that, a strong five ethical organizational culture supported by ethical decision-making and conduct would emerge and enhance professionalism within the industry”, Dr. Addison added.

He noted that the Banks, Specialised Deposit Taking Institutions, and PSPs Fraud reports issued by the Bank of Ghana annually give strong signals that the focus on ethics and ethical behaviour should be strengthened.

He added that a single case of fraud, involving an employee of a bank or any financial institution, affects the whole industry and weakens public confidence in the industry.