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Ghana: Coronavirus Threatening Banking Sector–BoG

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The coronavirus pandemic has introduced several risks to the banking sector threatening the growth of the industry, the Governor of the Bank of Ghana (BoG), Dr Ernest Addison has said.

He said cyber, credit, and operational risks were new threats to the banking sector, which banks must efficiently manage to avoid any unintended consequences on the industry.

Dr Addison disclosed this during a webinar by the Ghana Association of Bankers (GAB), in Accra last Thursday on the theme “Managing Banking Risks in Uncertain Times – COVID-19 Test Case.”

The programme was to create opportunity for stakeholders to deliberate on the risks emerging in the financial sector as a result of the COVID-19 pandemic and explore policy options and measures to manage them.

The Governor explained that in spite of the resilience of the banking industry, the aforementioned risks posed a challenge to the banking industry.

On cyber risk, Dr Addison explained that although, the pandemic boosted the move towards digital transactions and financial inclusion, it also brought in its wake a heightened sense of cyber-attacks within the financial sector.

Dr Addison called for an effective cyber risk management policies and procedures by banks to protect them from cyber threat and attacks.

“The Bank of Ghana expects all banks to build robust systems to forestall such cyber security incidences. All the successes chalked in the digitisation of banking systems would be eroded if adequate investments are not made for effective protection of the information technology and security infrastructure,” Dr Addison said.