The Chief Executive Officer of the Ghana Association of Banks, John Awuah, has encouraged bank customers to take a more active interest in understanding how their financial institutions operate by reading annual reports and financial statements.
Speaking at this year’s Corporate Governance Series in Accra on Thursday, themed “Bank Corporate Governance and Financial Stability: The Role of the Bank Board,” Mr. Awuah said depositors must go beyond merely saving money and make an effort to review the publicly available reports of banks that hold their funds.
According to him, annual reports are valuable tools that provide insight into the internal health and operations of banks, including their capital adequacy, liquidity position, and levels of non-performing loans.
Mr. John Awuah, who served as one of the panellists for the event, also highlighted the importance of strong corporate governance practices in ensuring financial system stability.
He stressed that effective governance should not be treated merely as a compliance requirement but must be visible, measurable and auditable.
He noted that enhanced disclosure requirements now make it easier for the public to evaluate how banks are governed.
“If you read the annual report, you will find detailed sections on corporate governance, board decisions, compensation structures, and board effectiveness, including attendance and meeting regularity. By their deeds, you shall know them,” he said.
Touching on regulatory reforms introduced after Ghana’s banking sector clean-up, Mr. Awuah pointed to the rotation of external auditors as a key measure aimed at strengthening transparency and independence.
“The corporate governance directives and auditor rotation requirements came as consequences of the banking sector clean-up. Familiarity can pose risks, which is why there is now a requirement to rotate auditors, as provided under the Companies Act and Bank of Ghana directives,” he explained.
Mr. John Awuah also addressed concerns about outsourced staff within banks, describing it as an ongoing industry debate.
While stating that outsourced employees typically have permanent appointments with their parent organisations, he acknowledged that variations in compensation structures could potentially influence performance and risk exposure.
On board composition, he strongly advocated for greater board diversification and the inclusion of independent directors.
He argued that independent board members play a critical role in challenging management decisions and promoting long-term institutional stability.
“Independent directors bring independence of mind and professional competence. Best practice requires that we advocate for more independent voices at the board table, not fewer,” he said.
The Corporate Governance Series brought together banking professionals, regulators, and industry stakeholders to discuss governance standards and their implications for financial stability in Ghana.
