The Bank of Ghana has called on banks to improve the quality of their risk management system, corporate governance and internal control practices.

Special Advisor to the Governor, Mrs Grace Akrofi, said with the implementation of sound risk management practices, banks would be able to access and set aside the appropriate capital needed for inherent operational risks as required under the capital requirement directives and the Basel ll and III frameworks.

Mrs Akrofi, who was speaking at the launch of the Royal Bank’s fifth Anniversary Celebration in Accra, said the BoG would also ensure that the banks comply with the international financial reporting standards.

"This is to guarantee uniformity in the presentation of financial accounts and accompanying notes to financial accounts," she added.

She said the new minimum capital requirement offered valuable opportunities for consolidation within the Banking industry and encouraged small and under-capitalised banks with corporate governance challenges among others to merge and consolidate their operations.

She said the BoG is of the view that there were more benefits to be gained from consolidation, hence, their bias in encouraging mergers in the industry.

Mrs Akrofi said the consolidation process was expected to lead to the emergence of big Banks to help finance high-valued projects that would be transformative for the economy.

"Bank consolidation will pave way for bigger operations with relatively lower costs associated with the provision of banking services," she said.

The Special Advisor said these would ensure stability and sustainability of the banking sector and contribute to the enhancement of the resilience of the financial system and contribute to the needs of the growing economy.

She said the new Bank's and SDI Act has made provision for the establishment of criteria for mergers and acquisitions, which addresses in more details, what BoG must consider in determining whether or not to approve a merger or amalgamation under the Act.

Professor Bill Pupulampu, Chairman of the Board of Directors, the Royal Bank, said the Bank would continue to improve their operations and serve their clients better.

He said the future of the Bank was very promising and bright, having grown from a single branch in 2012 to 26 branches in five years, “we can only hope for greater things in the years ahead.”

He said the Bank’s assurance to their customers and other stakeholders was that; they would continue to improve their services and develop products to serve their changing needs and wants.

He said in 2014, through the vision and instrumentality of the Founder Alhaji Dr Adamu Iddrisu, The TRB Foundation now Alhaji Dr Adamu Iddrisu Foundation was inaugurated to provide relief in the area of Water and Sanitation, Health, Education, Culture and Sports to deprived communities.

He said since its establishment the Foundation had provided over 120 boreholes to 115 communities across the country under its flagship “water for life” project.