Graphic Business News

Integrity key to building resilient financial sector

By: Gifty Owusu Kwarteng
• Mr Osei Gyasi - Head of Banking Supervision, BoG
• Mr Osei Gyasi - Head of Banking Supervision, BoG

The Head of Banking Supervision at the Bank of Ghana (BoG), Mr Osei Gyasi, has reiterated the need to build a critical mass of professionals with integrity in the financial sector. 
He said in order to build a robust financial sector, professionals in the sector needed to collectively depict integrity and stand up for the truth.
“To be able to work in the financial sector, one must be proper and fit in terms of morals, ethics and qualification and experience, in order not to be confronted with the challenges we are facing now,” he said at the launch of the Faculty of Accounting and Finance (FAF) Week at the University of Professional Studies, Accra (UPSA) on March 18.               

The programme was on the theme: “Strengthening the financial sector of Ghana, The role of Accounting and Finance Professionals”. 
Mr Gyasi added that in order to strengthen the financial sector, the industry players must be able to live up to the sector’s expectations and also retain relevant skills with regard to the financial sector.
He subsequently stated that the lack of risk management in the financial sector would lead to the collapse of the banks, warning that the BoG would not entertain such conduct going forward.

Financial reporting
Mr Gyasi indicated that one of the vital activities in the financial sector had to do with financial reporting. But unfortunately, professionals were involved in misreporting.
He said some of the professionals who had a finance background and qualified accountants were involved in this misreporting.
He added that from their perspective, one of the factors that led to the collapse of the banks recently misreporting from some professionals in the sector.
“From where we sit , we know that one of the factors that has resulted in the banking sector crises is misreporting from some professionals, “he stated.
He added that mostly, the financial statements that were released by those professionals did not reflect the actual situations at stake and were misleading and that had resulted in the many challenges.
He, therefore, called on the industry players to stick to integrity to help reform the financial sector. 
Mr Gyasi underscored some reforms that the BoG had put in place to curb the financial sector challenges.
He said BoG had implemented Act 930 which was a major legal framework to strengthen the sector and prevent it from future financial crisis.
Other reforms included the corporate governance directive, mergers and acquisition directive, fit and proper directive and risk management guidance among others to help strengthen the sector in order to maintain a robust economy. 
He added that these reforms were in the right direction and that BoG would play its part by ensuring that they built a financial sector that was firm.