President of the Ghana Association of Banks, Kwamina Asomaning, has emphasized the need for financial institutions to strike a balance between ambitious profit targets and ethical work environments.
Speaking on PM Express Business Edition on Joy News, the Managing Director of Stanbic Bank Ghana acknowledged that banking is a demanding industry where performance expectations are high. However, he cautioned that these pressures should not lead to unethical behavior among employees.
“The targets are tough. I mean, banks are not non-governmental organizations. They are profit-making entities, and we get compensated at a level that ensures that, you know, we not only put something on the table for ourselves but return decent profits to our shareholders,” he stated.
While recognizing that financial institutions must remain profitable, Asomaning stressed the importance of ensuring that employees operate in a fair and ethical environment. He noted that professionals in the banking sector are among the most privileged in Ghana’s workforce, making it essential to instill strong moral values within institutions.
“Yes, it’s a tough environment. It’s not for everybody. And I just would hope that there’ll be a decent balance between ensuring that everyone has targets to keep us focused and ensuring that we’re returning profits that are commensurate with the capital that has been given to us as stewards. But at the same time, it’s important to make sure that the lifestyle that we bring people to lead is a balanced one and doesn’t encourage excessive risk-taking or generate misconduct issues,” he advised.
Beyond compensation, Asomaning also highlighted the role of institutional culture in shaping ethical behavior. He explained that financial crimes and misconduct are often influenced by personal values and the work environment rather than salary levels. He noted that most instances of fraud within banks are not necessarily committed by the lowest-paid employees but rather stem from deeper ethical lapses and value systems within institutions.
Recent data from the Bank of Ghana underscores the urgency of addressing ethical lapses within financial institutions. In 2023, banks reported 969 fraud incidents, a 17% decrease compared to 2022. However, financial losses surged to GH¢63 million, marking a 21% increase from the previous year’s GH¢52 million. Notably, staff-related fraud cases rose by 46%, from 188 incidents in 2022 to 274 in 2023. Of these, 211 involved cash theft, a significant rise from 140 cases the prior year.
Asomaning stressed that addressing financial misconduct requires a strong emphasis on moral and ethical training, as well as cultivating a work culture that discourages fraudulent behavior. He pointed out that while external economic conditions and societal influences play a role, banks have a responsibility to instill good values in their employees to prevent misconduct.
