In a bid to further deepen sustainable banking practices in the country, the Bank of Ghana has held a workshop for banks and other financial institutions in the country.

The workshop which was held with partnership from the Ghana Association of Banks (GAB) and the Environmental Protection Agency (EPA) was to train the banks on Ghana Sustainable Banking Principles 3-7.

This is after the successful completion of principles one and two.

The sustainable banking principles was designed by the central bank to assist banks to respond to the emerging global megatrend issues, such as human security, anti-money laundering, socially responsible stewardship, information communication transparency and disclosure, corporate integrity, environmental and climate change.

Speaking at the opening of the training, Deputy Director of Banking Supervision at the Bank of Ghana (BoG), Ismail Adam, said the training session marks an essential step in the BoG’s journey toward achieving sustainable banking in Ghana.

He said deepening the industry’s understanding of principles 3 to 7,  would help equip them with the knowledge and tools needed to drive the needed change in the financial sector.

“Let us embrace this opportunity to share ideas, learn from experts, engage in meaningful discussions, and build a strong network of collaboration,” he stated.

Promoting corporate governance

He said principle three emphasised the need for banks to promote good corporate governance and ethical standards and to consider the social and environmental risks associated with their lending and investment activities.

Principle four calls for banks to promote gender equality by the adoption of responsible banking practices and embedding environmental and social considerations into their internal policies and processes.

Mr Adam said this principle aimed to strengthen support for women’s social and economic issues by increasing access to financial services through tailor-made product development and customer engagement.

“Together, we will explore practical approaches to achieve this integration and enhance our ability to drive positive change,” he noted.

Collaborations

Principle five emphasises the significance of collaboration and partnerships in achieving financial inclusion within the banking sector.

Ghana became the 18th Alliance for Financial Inclusion (AFI) member to commit to the Maya Declaration (an initiative pushing to expand financial inclusion worldwide).

Mr Adam said the industry would, therefore, explore ways to foster collaboration among banks, regulators, and other stakeholders to amplify inclusive growth and protect vulnerable communities.

Principle six encourages banks to engage with their stakeholders to promote resource efficiency, sustainable consumption and production.  

“By involving stakeholders, including customers, employees, and local communities, in our decision-making processes, we can create products and services that align with their values and contribute to sustainable development,” Mr Adam stated.

Principle seven calls for banks to promote transparency and accountability by disclosing their environmental and social impacts.

He said transparent reporting enhances trust, facilitates informed decision-making and encourages continuous improvement.

“During this training, we will gain insights into the gaps identified and the expectations of the regulator with respect to reporting,” he stated.

SOURCE: GraphicOnline