Ghana International Bank trains staff on risk management

London-based Ghana International Bank (GHIB) has organised a four-day training on risk management in banks and its implications for capital in Accra.

The workshop brought together 25 bankers and senior executives from the West African region to upgrade their knowledge and skills on handling risks during operations.

Speaking at the opening, the Chief Executive and Managing Director of GHIB, Mr Joe Mensah, said, the bank organises the training every year to highlight best practices in the banking industry with respect to risk management.

 “I am delighted that we are able to deliver this programme for a second consecutive year.  Through such programmes, GHIB is able to share with the banking community with which we work contemporary issues and best practices in banking,” he said. 

Sufficient capital

The First Deputy Governor of the Bank of Ghana and a Director of GHIB, Mr Millison Narh reiterate the need for banks to have enough capital to be able to absorb unexpected losses that might occur during their operations. 

‘Banks must hold sufficient capital to absorb unexpected losses. Risk management and its implications for capital is a critical part of this process. At the central bank we recognise the role that banks play in the economy and we are constantly reviewing prudential rules that cover the quantity and quality of capital, the basis for liquidity and counterparty risks’

An Executive Director at the Bank,  Mr Mark Arthur said banks must hold sufficient liquidity they can fall on to meet their obligations during stressful periods. 

‘Banks must learn the lessons of the 2008 financial crisis. Holding adequate capital to underpin a bank’s balance sheet is not enough. It must have sufficient high quality liquid assets to meet its obligations as and when they fall due in stressed periods. To do this effectively banks must identify, measure their risks and understand their implications on their capital,’ he said.

GHIB in Ghana

GHIB has over 50 years presence in the heart of the city of London, the world’s leading financial centre. GHIB is unique in that it is a  Ghanaian owned bank authorised by the UK Prudential Regulatory Authority (PRA) and regulated by the Financial Conduct Authority and the PRA.

GHIB focuses on four key areas: international trade finance, correspondent and corporate banking, treasury and transactional banking services. For organisations doing business in Africa the bank provides a gateway to the global financial system, providing access and expertise, capital and extensive cross a border capabilities.

The bank’s exposure in the region has been growing rapidly and is currently in excess of US$350m. The growth in GHIB’s African operation is reflected in the surge in both the bank’s balance sheet that has more than doubled in the past 10 years and its pre-tax profits which has increased fivefold during the same period. The bank is considered a top tier bank in the London market in terms of profitability and operational efficiency.