Prime News Ghana

BOG calls on banks to readjust transaction charges 

By Justice Kofi Bimpeh

The Bank of Ghana, BOG has called on banks in the country to readjust their transaction charges.

According to the BOG, there is a need for the banks to make use of technology to drive down charges on services and transactions.

The Governor of the BOG, Ernest Addison who was addressing members of the Chartered Institute of Bankers Ghana at their annual banking conference said digital innovation present perfect opportunity for banks and specialised deposit-taking institutions to operate at a lower cost.

"The greatest obstacles are agriculture, legacy systems and existing skills....., therefore, the industry needs to retool legacy systems and enhance employee skills to use new technology like artificial intelligence, machine learning and other technologies underpinned  by date and advanced analytics to offer better services, to become sustainable the sector also needs to reassess fees, charges and promote transparency in their dealings with consumers, consumers want cost-efficient transactions and industry players must optimise the use digital infrastructure and technology to offer quality service at relatively cheaper cost."

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BOG to reduce salaries of MDs, CEOs of banks

The Bank of Ghana, BOG has disclosed that they planning to reduce salaries of Managing Directors and Chief Executive Officers of banks in the country.

The move according to BOG it to cut down on the huge salaries of Managing Directors who are not performing to satisfaction.

Reacting to a question after announcing the new policy rate, Governor of the Bank of Ghana, Ernest Addison explained that one of the benchmarks of reducing the salaries will be the number of loans a bank has given out and collected or not collected.

"As you can see, this is a recent decision, we've looked at the operational cost of the banks, if you look at the cost of operation of the banks you will see where the inefficiencies are coming from, and we think it's about time we sit down and have a conversation to ensure that CEOs that are reporting all this high amount of ..... are not being compensated in excess in some of the results that they are achieving, let's bring some equity into the system so this is early days yet but it's an idea that we have thrown out and as part of the processes after every MPC, we have a meeting with the Ghana Association of Banks and I believe with the meeting that is on Wednesday we will go through the details of all of these with the stakeholders....."