29.2 C
Accra
Thursday, October 21, 2021
No menu items!

BoG to review compensation of bank CEOs in line with their banks performance

Must Read

Court orders Funny Face to Drug Use Test

By Naomi Commey. The Kaneshie Magistrate Court has granted Police permission to subject Benson Nana Yaw Oduro Boateng, popularly known...

Dr. Bawumia reiterates the need for African Leaders to focus on job creation

By: Mercy Darko More than 2000 youth across Africa have converged on Ghana for the 4th Edition of the Youth Connekt Africa...

Professor Nana Aba Appiah Amfo confirmed VC of UG

By: Samuela Quartey Council of the University of Ghana has confirmed the appointment of Professor Nana Aba Appiah Amfo as...

The Bank of Ghana (BoG) will begin scrutinising the compensation packages of chief executive officers (CEOs) and key management personnel of banks in a bid to ensure that the banks’ operational costs are not passed on to customers.

Close scrutiny is also expected to be applied to the remuneration of bank directors.

These are part of a raft of measures to align compensation packages to the overall performance of the banks.

The Governor of the Bank of Ghana, Dr Ernest Addison, who announced this at the 91st Monetary Policy Committee (MPC) news conference in Accra on Monday (November 25), indicated that the measures would help foster more competition in the banking sector, and that would help bring down lending rates, which presently hover between 24 and 27 per cent.

“We will be working closely with the banks to ensure that they do not pass on their operational inefficiencies and overhead costs to their clients,” he said.

The banking industry’s cost in relation to its income has consistently remained around 50 per cent for the past four years.

Currently, the CEOs of the top-tier banks in the country earn between GH₵874,000 and GH₵1.3 million per annum, and financial watchers say this contributes to inefficiencies, resulting in the high operating costs of the banks, which are passed on through high interest rates to their clients.

To address this problem, Dr Addison said, compensation packages of the top management of the banks would henceforth not be in excess of the overall results that they put out.

He said the overall performance of the banks would be linked to clear parameters that included the quality of their assets to determine the remuneration of top management executives.

The MPC maintained the policy rate at 16 per cent as a result of some threats to the country’s economic growth and inflationary outlook.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Court orders Funny Face to Drug Use Test

By Naomi Commey. The Kaneshie Magistrate Court has granted Police permission to subject Benson Nana Yaw Oduro Boateng, popularly known...

Dr. Bawumia reiterates the need for African Leaders to focus on job creation

By: Mercy Darko More than 2000 youth across Africa have converged on Ghana for the 4th Edition of the Youth Connekt Africa Summit. The summit is an...

Professor Nana Aba Appiah Amfo confirmed VC of UG

By: Samuela Quartey Council of the University of Ghana has confirmed the appointment of Professor Nana Aba Appiah Amfo as Vice Chancellor (VC) of the...

Presidency reacts to concerns of Law Candidates denied admission

By: Yvonne Asare Ofei A Deputy-Chief of Staff in charge of Operations, Emmanuel Bossman, says the concerns of the 499 Law Students who have been...

Shata Wale: Who is a Celebrity; Arnold Asamoah Baidoo speaks?

Following the arrest of Reggae/Dancehall Artiste, Charles Nii Armah Mensah known as Shatta Wale in showbiz after his purported gun attack which went viral...

More Articles Like This