Scrutinise banks’ performance amid governance reforms – GAB urges depositors

John Awuah, Chief Executive Officer of the Ghana Association of Banks, has advised depositors to utilise the Corporate Governance Directive Disclosure framework, which requires banks, by law, to publish their annual reports.

He urged depositors to take a keen interest in the operations and performance of the banks where they save their money.

Speaking at the Ghana Institute of Management and Public Administration (GIMPA) Law School Corporate Governance Series, Mr Awuah said reviewing annual reports—particularly the corporate governance disclosure sections—would help depositors understand how and why key decisions are taken.

He noted that this would also enable them to assess the accountability of bank boards to stakeholders and determine the financial strength and viability of their banks.

“You don’t have to be a specialist in the scheme of things, and you will find out a whole lot of things, including the financial strength and viability that you are looking for,” he said.

This year’s series is on the theme: “Bank Corporate Governance and Financial Stability: The Role of Bank Boards,” and aims to promote legal and ethical leadership across the corporate, financial and public sectors.

Mr Awuah advised depositors who may not understand financial reports to consult banking experts for guidance, especially when assessing financial data and exploring investment options.

He said banking operations had improved in recent years due to compliance with directives issued by the Bank of Ghana (BoG).

According to him, the BoG’s directives have embedded corporate governance not merely as an internal compliance tool but as a visible, measurable and auditable system through mandatory disclosures.

Mr Awuah added that bank boards are expected to undergo corporate governance certification processes to better understand emerging threats such as cybercrime and ensure long-term safety and sustainability.

“We are not only preaching corporate governance as a compliance activity; it should be in the DNA of the board,” he said, noting that governance accountability is gradually moving “from the boardrooms to the public.”

Mr Ismail Adam, Head of Banking Supervision at the Bank of Ghana, said the Central Bank had observed improvements in bank management following the implementation of corporate governance and disclosure directives.

“There is now greater coordination between the banks and the Bank of Ghana,” he said, explaining that structured engagement channels had strengthened governance, risk management systems, internal controls and oversight functions.

He emphasised that adherence to sound governance practices is essential to sustaining financial stability.

Mr Sina Kamagate, Executive Head of Retail Banking at GCB Bank Plc, called for a review of board compensation structures, noting that remuneration is closely linked to the expertise and independence board members bring to banking operations.

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