Ethical business practice should be pursued relentlessly and aggressively – BoG

Dr. Ernest Addison, Governor of the Bank of Ghana has emphasized the critical need for a concerted effort to embed a culture of ethical decision-making and conduct among industry players within the financial sector.

Speaking at the 27th National Banking and Ethics Conference, the Governor stressed the significance of upholding ethical standards to fortify trust and stability within the financial domain.

“Ethical business practice should be pursued relentlessly and aggressively by all industry players. This imperative is vital for building a values-driven culture that becomes ingrained in the fabric of every institution,” stated Dr. Addison during the keynote address presented by Mr. Bernard Otabil, Head of the Ethics and Internal Investigations Office at the Bank of Ghana.

The Governor highlighted concerning statistics revealed in the Banks, SDIs, and PSPs Fraud reports issued yearly by the Bank of Ghana. While the 2022 report indicated a decline in staff involvement in fraud cases from 278 in 2021 to 188 in 2022, these incidents, predominantly related to cash theft and fraudulent withdrawals, continue to pose a threat to public confidence within the industry.

“This underscores the need to educate and instill ethical behavior among financial staff. Raising awareness, ethical training, and cultivating an ethical culture are essential building blocks for establishing an ethical foundation,” Governor Addison emphasized, referring to the persistent trends showcased in the fraud reports.

He underscored the pivotal role of the Bank of Ghana’s Code of Ethics and Ethics Policies in shaping ethical decision-making, highlighting their significance in fostering a healthy organizational culture rooted in ethical principles. Stressing the importance of joint efforts among industry stakeholders, Governor Addison expressed optimism that collaborative endeavors would enhance ethical conduct across the financial sector.

The collaboration between the Bank of Ghana, the Chartered Institute of Bankers, Ghana, and the Ghana Association of Banks resulted in the launch of the Ghana Banking Code of Ethics and Business Conduct. This initiative is expected to bolster professionalism and ethical standards within the banking industry.

Furthermore, Governor Addison emphasized the need for risk management to encompass cultural and conduct risks, acknowledging the intertwined nature of these risks with unethical behaviors.

The conference also showcased initiatives such as the redesigned Chartered Banker curriculum and an ethics certification program, envisioned to equip banking professionals with specialized knowledge and ethical values necessary for nurturing a strong ethical culture within financial institutions.

“Professional qualification and continuous development are vital for a sustainable banking industry. Just as lawyers and doctors pursue approved courses, bankers must prioritize ethical education to ensure the sector’s long-term development,” Governor Addison concluded.

The fervent commitment toward ethical business practices echoed throughout the conference, underscoring the collective responsibility to fortify ethical foundations within the financial sector for enhanced trust and confidence.