Risk management key to banking – BoG Governor

The Governor of the Bank of Ghana, Dr Ernest Addison, has said risk management is a key component in banking, therefore, the central bank will ensure that banks adopt risk management strategies.

Speaking at the launch of the country's Sustainable Banking Principles and Sector Guidance Notes in Accra on Wednesday, 27 November 2019, Dr Addison explained that all over the world, central banks are ensuring that banks adopt this strategy given the sensitive nature of the sector.

"The Bank of Ghana, therefore, recognises environmental and social risk management (ESRM) as key components of banks overall risk management strategy. We are not alone in this regard", he said.

Central banks and banking regulators around the world, he noted, have "mainstreamed ESRM in their prudential risk assessments, given the potential impacts of environmental and social factors on the long-term safety and soundness of banks".