Depositors encouraged to monitor Banks’ performance as governance reforms deepen

Depositors have been encouraged to pay closer attention to how their banks operate and perform in order to safeguard their savings.

John Awuah, Chief Executive Officer of the Ghana Association of Banks, said customers should take advantage of the Corporate Governance Directive Disclosure Framework, which legally requires banks to publish their annual reports.

He made the remarks during the Corporate Governance Series at the Ghana Institute of Management and Public Administration (GIMPA) Law School. According to him, reviewing annual reports — particularly the corporate governance disclosure sections — allows depositors to understand how major decisions are taken and how accountable bank boards are to stakeholders.

Mr Awuah explained that such scrutiny also helps customers evaluate the financial health and long-term viability of their banks. He noted that one does not need to be a financial expert to gain useful insights from these reports, as they provide important information on a bank’s strength and stability.

This year’s programme is on the theme, “Bank Corporate Governance and Financial Stability: The Role of Bank Boards,” and seeks to promote ethical and legal leadership across corporate, financial and public institutions.

For depositors who may struggle to interpret financial statements, Mr Awuah advised consulting banking professionals for guidance, particularly when analysing financial data or considering investment options.

He further indicated that banking operations have improved in recent years due to compliance with directives issued by the Bank of Ghana (BoG). He said the Central Bank’s directives have made corporate governance not just an internal compliance requirement but a transparent, measurable and auditable system through mandatory disclosures.

Mr Awuah added that bank boards are now expected to undergo corporate governance certification to better understand emerging risks, including cybercrime, and to strengthen long-term institutional resilience. He stressed that corporate governance should become embedded in board culture rather than treated as a mere regulatory obligation, noting that accountability is increasingly extending beyond the boardroom to the public.

Also speaking at the event, Ismail Adam, Head of Banking Supervision at the Bank of Ghana, said the Central Bank had observed notable improvements in bank management since the introduction of the governance and disclosure directives. He highlighted enhanced collaboration between banks and the regulator, saying structured engagement channels have strengthened governance frameworks, risk management systems and internal controls.

He emphasised that adherence to sound governance principles is essential to maintaining financial stability.

Meanwhile, Sina Kamagate, Executive Head of Retail Banking at GCB Bank Plc, called for a reassessment of board remuneration structures. She noted that compensation levels are closely tied to the expertise, independence and value board members contribute to banking operations.