The Chartered Institute of Bankers in collaboration with the Bank of Ghana (BoG) and the Ghana Association of Bankers will soon launch the Ghana Banking Code of Ethics.
The move is expected to support the Central Bank’s quest to reduce the number of fraud cases within the banking industry, a significant number which is perpetuated by employees as well as boost risk management practices.
President of the institute, Rev. Patricia Sappor told Joy Business her outfit is committed to supporting the reduction of fraud cases within the banking space and also enhance risk management practices to reduce loan losses and avert bank failures.
“We’re going to launch the banking code of ethics – Ghana Banking Code of Ethics, very soon in collaboration with the Central Bank and the Ghana Association of Bankers; that is one thing,” she said.
She further revealed that for a proper implementation of the Ghana Banking Code of Ethics, the Chartered Institute of Bankers and Ghana Association of Bankers would have to go by a new curriculum.
“And then also our whole curriculum, we need to review it to be in line with what we’re saying, that is the digital world but we have to also change our curriculum. So, these are some of the things that we’re going to do,” she revealed.
BoG issues risk management guidelines for RCBs
The Bank of Ghana last week issued a Risk Management Guidelines for Rural & Community Banks to ensure among other things a well-structured approach to risk management that meets the minimum standards of RCBs as well as protect them from losses.
The guidelines set out the minimum standard provisions on policies and procedures that would have to be covered in the various policies and procedures manuals used by the RCBs.
According to the Central Bank, the guidelines will also provide RCBs with the needed guidance to protect their institutions from losses; protect and attract capital; instill confidence in the regulator and other stakeholders through the adoption of measures that promote stability in Rural Banks and the wider financial sector.
2019 banking fraud cases
Fraud cases within the banking industry went up by 5% to 2,295 in 2019, the 2019 Banking Industry and Fraud Report revealed.
The marginal increase in the number of fraud cases according to the Central Bank could partly be due to the improved efforts by the Financial Stability Department to identify, monitor and to ensure compliance with reporting of fraud cases in the industry.
The report revealed that the various forms of advanced technologies adopted by financial institutions made the banking sector more susceptible to various risks such as phishing, identity theft, card skimming, vishing, email fraud and more sophisticated types of cyber-crime.