Financial sector cleanup: Poor Corporate Governance led to irresponsible risks – BoG
The Bank of Ghana (BoG) has reiterated that poor corporate governance significantly contributed to the excessive and irresponsible risks taken by some financial institutions, necessitating the financial sector clean-up in 2017. The central bank emphasized that this measure was crucial to secure depositors' funds and protect the financial sector. To sustain the improvements achieved from the clean-up, the BoG issued the Corporate Governance Directive in 2018 and the Fit and Proper Persons Directive in 2019. These directives aim to strengthen and embed sound corporate governance practices in Regulated Financial Institutions (RFIs) and reinforce the BoG's gatekeeping role in the financial...
