The Ghana Association of Banks (GAB) has identified asset quality, fraud, cybersecurity, technology and emerging financial innovations as key risks requiring greater attention as the banking sector evolves.

Chief Executive Officer of the Ghana Association of Banks, John Awuah, says the industry must strengthen its risk management systems as banks operate in an increasingly changing economic and technological environment.

Speaking at the Association’s annual general meeting, Mr. Awuah said the banking industry had made significant progress following the economic difficulties of recent years but cautioned that the recovery should not lead to complacency.

“The banking industry responded constructively and positively, with strong balance sheets, improved capital positions, resilient profitability, and continued growth in deposits and customer loans,” he said.

The CEO said the more important challenge for the sector now is how to use the stability achieved to build a stronger and more sustainable banking industry.

“The question before us, therefore, is no longer simply whether the banking industry has recovered from the difficulties of recent years. The more important question is, what do we do with the stability we obtain?” 

He added that banks must also recognise that the economic conditions that supported the industry in previous years are changing, particularly as inflation and interest rates decline.

“The movement from stability to transformation requires us to look beyond recovery and think deliberately about the banking industry we want,” Mr. Awuah said.

According to him, asset quality remains an important concern for banks while fraud and cyber-related threats are becoming increasingly significant as financial services become more digital.

He emphasised that the industry must strengthen its systems to deal with fraud, cybersecurity threats and risks associated with technology, fintechs, artificial intelligence and virtual assets.

He also called for greater collaboration among banks and other stakeholders to tackle these emerging risks, particularly in areas such as fraud prevention, cybersecurity, payment infrastructure and regulatory reforms.

He further stated that the banking sector must continue to improve access to finance, particularly for small and medium-sized enterprises, while ensuring that increased lending is supported by sound risk management.

John Awuah also noted that the industry’s transition from stability to transformation must ultimately produce a banking sector that is resilient, inclusive and capable of supporting Ghana’s long-term economic growth.