- Enhanced due diligence to reduce bank fraud.
- 2023 Fraud Report shows a 17% decrease in cases but a 21% increase in monetary losses to Gh¢63 million.
- Non-Performing Loans rise to 24.1%.
Dr. Ernest Addison, Governor of the Bank of Ghana, has issued a directive to enhance due diligence during recruitment to mitigate fraud cases involving bank workers. This instruction aims to strengthen the banking sector’s integrity and stability.
Speaking at the Ghana Association of Bankers’ Annual General Meeting in Accra, Dr. Addison emphasized the critical role of fraud prevention and detection. He stressed that these measures are vital to maintaining the financial system’s trust and confidence.
According to the Bank of Ghana’s 2023 Fraud Report, banks reported 969 fraud cases, representing a 17% decrease from 1,163 cases in 2022. However, the monetary loss from fraud increased by 21% to Gh¢63 million.
A concerning trend emerged: staff involvement in fraudulent activities rose significantly. In 2023, 274 bank staff were involved in fraud, a 46% increase from 188 in 2022. This surge underscores the need for enhanced internal controls.
Cash theft remained the primary method of fraud, with 211 staff involved (77% of total cases). This highlights the vulnerability of banking operations to insider threats.
Dr. Addison urged banks to strengthen their internal controls and enhance staff due diligence during recruitment. He also emphasized the importance of continuous in-house training on professional conduct.
The Bank of Ghana’s efforts focus on preventing and detecting fraud, ensuring the banking sector’s stability and integrity. Dr. Addison’s directive aims to bolster banks’ defenses against internal threats.
In addition to fraud prevention, Dr. Addison discussed the banking sector’s performance. In the first half of 2024, total banking sector assets grew by 33.3% to Gh¢323.1 billion.
Profitability, liquidity, and efficiency indicators also showed improvement. However, elevated credit risks pose threats to the recovery process, with the industry’s Non-Performing Loan ratio increasing to 24.1%.
Dr. Addison concluded by emphasizing the importance of partnership between the Bank of Ghana and the Ghana Association of Bankers. He expressed hope that this collaboration would consolidate gains, sustain confidence, and drive economic growth.
