By Kofi Ahovi
The Bank of Ghana (BoG) has introduced an Electronic Financial Analysis Surveillance System (E-FASS) which will make it possible for banks in the country to file their prudential returns on line.
This will also enable BoG to carry out much of its supervisory duties online, speeding up the entire process.
Banks in the country have therefore been advised to invest in information technology systems which would enable them interface with the central bank’s systems, in this regards, universal banks and non bank financial institutions have already been taken through the necessary processes to adequately prepare them to hook onto the new system.
Now as a policy from the central bank, rural banks that wish to open new agencies are required to first computerize their operations.
BoG in discharging its supervisory functions over the banking industry, has also adopted the Risk-Based Approach (RBS) to supervision, this involves the critical identification of risks associated with the operations of banks and assessment of management’s oversight functions of managing these risks in order to ascertain the effectiveness of the oversight responsibility.
By this, banks would be obliged to focus more on managing both real and inherent risks and thereby improve the overall risk within the industry.
A source at BoG who disclosed this to Business Week, urged all banks, both old and new to maintain and promote the integrity of the industry by preventing unscrupulous person from using their institutions to engage in illegalities.
It is in this light that BoG tasked all banks to religiously implement Know Your Customer (KYC) rules to promote and maintain the integrity of the industry.
According to the BoG, rural banks occupy very important positions in the sector, which is why efforts are being made to upgrade the way it supervises them.
The Bank of Ghana (BoG) has introduced an Electronic Financial Analysis Surveillance System (E-FASS) which will make it possible for banks in the country to file their prudential returns on line.
This will also enable BoG to carry out much of its supervisory duties online, speeding up the entire process.
Banks in the country have therefore been advised to invest in information technology systems which would enable them interface with the central bank’s systems, in this regards, universal banks and non bank financial institutions have already been taken through the necessary processes to adequately prepare them to hook onto the new system.
Now as a policy from the central bank, rural banks that wish to open new agencies are required to first computerize their operations.
BoG in discharging its supervisory functions over the banking industry, has also adopted the Risk-Based Approach (RBS) to supervision, this involves the critical identification of risks associated with the operations of banks and assessment of management’s oversight functions of managing these risks in order to ascertain the effectiveness of the oversight responsibility.
By this, banks would be obliged to focus more on managing both real and inherent risks and thereby improve the overall risk within the industry.
A source at BoG who disclosed this to Business Week, urged all banks, both old and new to maintain and promote the integrity of the industry by preventing unscrupulous person from using their institutions to engage in illegalities.
It is in this light that BoG tasked all banks to religiously implement Know Your Customer (KYC) rules to promote and maintain the integrity of the industry.
According to the BoG, rural banks occupy very important positions in the sector, which is why efforts are being made to upgrade the way it supervises them.
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