Governance reforms within Ghana’s banking sector are beginning to yield tangible results, with industry leaders pointing to improved transparency, accountability and financial stability.

At the forefront of this call for deeper public engagement is John Awuah, Chief Executive Officer of the Ghana Association of Banks, who has urged depositors to take an active interest in the performance and governance practices of their banks.

Speaking at the Ghana Institute of Management and Public Administration Law School Corporate Governance Series, Mr Awuah encouraged customers to make use of the Corporate Governance Directive Disclosure framework. The framework requires banks by law to publish their annual reports, including detailed corporate governance disclosures.

According to him, reviewing annual reports, especially the governance disclosure sections, can provide valuable insights into how key decisions are made and how accountable bank boards are to stakeholders.

“You don’t have to be a specialist in the scheme of things, and you will find out a whole lot of things, including the financial strength and viability that you are looking for.”
John Awuah

Mr Awuah stressed that depositors should not treat banking as a passive relationship but as a partnership that demands informed engagement. By examining published reports, customers can assess the financial health, sustainability and risk management structures of the institutions that hold their savings.

Corporate Governance Beyond Compliance

This year’s Corporate Governance Series is on the theme “Bank Corporate Governance and Financial Stability: The Role of Bank Boards.” The event seeks to promote legal and ethical leadership across the corporate, financial and public sectors.

Mr Awuah explained that corporate governance must not be reduced to a box-ticking exercise. He noted that governance principles are increasingly embedded in banking operations due to directives issued by the Bank of Ghana.

According to him, the Central Bank’s regulatory measures have positioned corporate governance as more than an internal compliance requirement. Instead, governance has become a visible, measurable and auditable system supported by mandatory disclosures.

He emphasised that bank boards are now expected to undergo corporate governance certification processes. This, he said, will equip board members to better understand emerging threats such as cybercrime and other operational risks, while safeguarding the long term sustainability of their institutions.

“We are not only preaching corporate governance as a compliance activity; it should be in the DNA of the board,” he said, noting that governance accountability is gradually moving “from the boardrooms to the public.”

The shift reflects a broader effort to ensure that governance standards are transparent and subject to public scrutiny, reinforcing confidence in the financial system.

Central Bank Sees Measurable Improvements

The Bank of Ghana has also observed improvements in the banking sector following the implementation of corporate governance and disclosure directives.

Mr Ismail Adam, Head of Banking Supervision at the Central Bank, confirmed that stronger governance frameworks have enhanced management practices across banks. “There is now greater coordination between the banks and the Bank of Ghana,” he said.

He explained that structured engagement channels between the regulator and financial institutions have strengthened governance systems, risk management frameworks, internal controls and oversight functions.

According to Mr Adam, adherence to sound governance practices remains essential to sustaining financial stability. Strong board oversight, transparent disclosures and effective risk management systems collectively serve as buffers against systemic shocks.

The reforms come on the heels of Ghana’s banking sector cleanup exercise in recent years, which underscored the importance of regulatory vigilance and corporate responsibility.

Empowering Depositors Through Information

While governance reforms are largely driven by regulators and boards, Mr Awuah believes depositors also have a critical role to play. He advised customers who may struggle to interpret financial reports to seek guidance from banking experts when reviewing financial data or considering investment options.

The availability of annual reports and corporate governance disclosures offers depositors an opportunity to make informed decisions about where to place their funds. Understanding financial ratios, capital adequacy levels and governance structures can help customers evaluate whether their banks are resilient and well managed.

By encouraging depositors to scrutinise publicly available information, the Ghana Association of Banks is promoting a culture of accountability that extends beyond regulators and boardrooms.

Rethinking Board Compensation and Expertise

The conversation on governance also extends to board composition and remuneration. Mr Sina Kamagate, Executive Head of Retail Banking at GCB Bank Plc, called for a review of board compensation structures.

He noted that remuneration is closely linked to the expertise, independence and quality of oversight board members bring to banking operations. Adequate compensation, he suggested, can help attract and retain professionals capable of steering banks through increasingly complex financial and technological landscapes.

Strong boards, equipped with the right skills and supported by fair compensation structures, are better positioned to provide strategic direction and maintain effective oversight.

A Culture of Transparency for Long Term Stability

The growing emphasis on governance reforms signals a shift toward a more transparent and resilient banking sector in Ghana. With mandatory disclosures, board certification requirements and structured regulatory engagement, governance is becoming central to operational integrity.

Industry leaders maintain that the reforms are already strengthening financial stability. However, sustaining these gains will depend on continuous compliance, vigilant supervision and active public participation.

As governance accountability moves into the public domain, depositors are being encouraged to step into a more informed role. By scrutinising annual reports and understanding the decisions shaping their banks, customers can contribute to a more stable and trustworthy financial system.