• Fri. Aug 12th, 2022

Mitigate cyber risks – Governor of BoG charges banks as online banking increases

ByEditor

Jan 31, 2022 ,

Dr Ernest Addison, the Governor of the Bank of Ghana, has stated that the banking sector has seen a rise in the use of internet banking as customers turn to branchless banking for transactions.

Banks, he added, have been forced to raise their investments and enhance their digital systems in order to stay competitive.

These beneficial advancements in financial services, digitalisation, and the transition to virtual platforms have brought with them inherent cyber threats, which institutions must work diligently to address, according to Dr. Addison.

He went on to say that while the BoG has provided supportive directives, regulations, policies, and guidelines on Cyber Security to protect the financial sector from such threats, banks must also be proactive and strengthen internal risk management frameworks, as well as build a robust and secure digital infrastructure, to avoid cybercrime incidents.

“Comprehensive and demanding KYC procedures must also be established to strengthen banks’ customer acceptance policies.” These will aid in preventing suspicious customers from pursuing fraudulent activities through the banking sector, such as money laundering, terrorist financing, and credit fraud,” he said on Friday January 28 at the commissioning of the Republic Bank Ghana Limited head office annex at ridge in Accra.

He also stated that the complete changes to restore the banking system’s credibility and confidence have been in place for almost two years.

The Bank of Ghana has issued a number of directives since then, including an exposure draft of the Corporate Governance Disclosure Requirements, which aims to promote and enhance transparency and accountability to stakeholders, according to Dr. Addison.

“The Bank of Ghana continues to keep a close eye on all banks to guarantee the industry’s stability and soundness.” Despite the challenging economic impact of the COVID-19 pandemic, comparative performance indicators based on the bank’s prudential returns show significant growth in assets and deposits at Republic Bank.

“The bank’s improved mobilization strategy resulted in significant deposit growth of 15.6 percent in the fourth quarter of 2021. Over the same time period, total assets increased by 71.7 percent, and the Capital Adequacy Ratio (CAR) of 23.7 was over the regulatory requirement as of December 2021.”

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