Firms’ survival in coronavirus era hinges on good corporate governance-Second Deputy Governor, BoG

Good corporate governance will be the defining issue that differentiates firms that will be able to ride the storm as the novel coronavirus pandemic rages on, the Second Deputy Governor of the Bank of Ghana (BoG), Dr Elsie Addo  Awadzi has said.

According to her good governance would be the deciding factor for companies that survived the COVID-19 storm because they managed their risks effectively.

Dr Awadzi said this in her opening remarks through a webinar on a BoG/Bank of England regional training for staff of Central Banks in Africa and other regional partners such as WAMI and WAIFEM.

The three-day event under the auspices of the Bank of England is on the theme “Good Governance as a tool for microprudential supervision.”

The training is meant to help build the supervisory capacity of Central Banks in the region through peer learning and help the participants to find cutting-edge solutions to supervisory concerns that were common to Central Banks in Africa as the sector tried to promote effective regulation and supervision of Pan-African banks that operate in several Africa countries and beyond.

“Good regulation and supervision  must constantly assess the adequacy of rules that promote good governance in the banking industry, and assess the quality of governance in each regulated institution and make the right judgement calls as to remedial action that is needed to correct poor governance,” said Dr Awadzi.

She said the theme of the programme was timely as corporate governance in the banking sector had always been important in promoting the safety, soundness, and resilience of the sector, and by extension trust and confidence in the sector.

The Second Deputy Governor commended the Bank of England for understanding how important the training was in supporting the BoG`s efforts to strengthen cross-border supervisory cooperation in the region.

“Indeed, these regional events will help to build the supervisory capacity of Central Banks in the region,” said Dr Awadzi.

She expressed the hope that the participants would be equipped with the guidance and practical lessons from the United Kingdom that would help in strengthening corporate governance standards in Africa’s banking landscape.

She encouraged the participants to share experiences and knowledge on the issues with their colleagues.

The participants will be taken through topics such as macroeconomic forecasting, macroprudential assessments, microprudential supervision, crisis management and resolution of failed institutions.

BY KINGSLEY ASARE

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