Bank collapses biggest tell-tale signals about importance of good corporate governance – Heritage Bank CEO

The recent turbulence in Ghana’s banking sector which has seen some banks collapsed and others merged is a major indication of the significance of good corporate governance practices in the sector, Chief Executive Officer of the Heritage Bank, Patrick Fiscian has said.

Speaking at the launch of the 2nd edition of the Ghana SME and young CEOs Summit Tuesday, Mr. Fiscian noted how a proper governance system boosts bank institutions’ growth and investor confidence, reducing the chances of failure or collapse.

“I believe the recent happenings in our banking sector are the biggest tell-tale signals regarding the relevance of good corporate governance practice. The story is still unfolding and today seven indigenous banks have gone under as the Bank of Ghana continues in its strides to sanitise and strengthen the banking sector in Ghana”.

“The root cause of the failure of most of these banks have had to do with poor corporate governance structures and or weak enforcement of the same”, he stated.

He urged SMEs to likewise pay critical attention to issues of good corporate governance to increase their likelihoods of having good standing as far as satisfying regulatory requirements and boosting investor confidence is concerned.

“While some companies especially SMEs may bulk at the stress of putting together a robust corporate governance structure, it must be emphasized that this is critical because beyond satisfying regulatory requirements and boosting investor confidence, good governance can have great impact on SMEs. It is fundamentally about improving transparency and accountability within existing systems”.

The 2nd edition of the Ghana SME and Young CEOs summit was launched Tuesday, August 7, at the Kempinsky GoldCoast in Accra. The program which will be held on November 26, 2018 seeks to ensemble various young and innovative business owners and entrepreneurs in the Small and Medium Scale Enterprise to share ideas.

The theme; Corporate Leadership governance and technology: Strong pillars for business and economic growth” is aimed at better equipping CEOs, Entrepreneurs with the strategic leadership capabilities to direct in such an environment.