The Chartered Institute of Bankers (CIB) has stated that the subject of ethics continues to rank high among concerns in the banking industry, according to surveys conducted.
Robert Dzato, the institute’s Chief Executive Officer (CEO), in his address at the 28th Annual National Banking and Ethics Conference highlighted surveys which include responses from over 6,000 banking professionals that revealed 60 percent of junior-level employees acknowledge awareness of unethical practices within their institutions.
At the middle-management level, 51 percent believed that such conduct contributes to high Non-Performing Loans (NPLs) in the sector while 99.2 percent of executives acknowledge ethics’ importance to banking and financial sector sustainability.
“The fundamental truth is that we need more trusted professionals,” he added.
CIB’s initiatives to address these issues are already underway. Among those most significant is the ethics certification programme, which has already seen participation from 11 commercial banks and over 6,000 professionals across various levels.
The certification programme targets professionals at junior, middle and executive levels. It aims to ensure that the entire workforce understands the importance of ethical conduct, not only as a regulatory requirement but also a key component of the sector’s long-term stability.
According to the Bank of Ghana’s 2023 fraud report, incidents of staff-related fraud at banks and Specialised Deposit-taking Institutions (SDIs) increased by 46 percent – rising from 188 cases in 2022 to 274 cases in 2023.
Of the 274 staff-related fraud cases in 2023, 211 involved cash theft (cash suppression), which entails hiding and redirecting cash deposits or payments from customers, compared to 140 cases in 2022.
Additionally, the CIB’s research showed that 52 percent of junior-level employees believe that a lack of ethics contributed to the sector’s instability; including the fallout from previous banking crises.
Indeed, industry professionals agree that further reform is necessary.
However, CIB has already begun integrating AI-focused programmes into its educational offerings. This year, it launched a data analytics training programme designed to equip banking professionals with the skills needed for using AI tools to analyse portfolios and manage risks.
The need for ethical leadership and adoption of advanced technologies like AI and data analytics will drive the industry forward, ensuring that Ghana’s financial services remain resilient in the face of both local and global challenges.
