At a time when the financial sector is recovering from a potential crisis, a new report ranking 30 of Ghana’s universal banks has been launched with Standard Charted Bank adjudged as the most credible.
Zenith Bank, Ecobank, United Bank for Africa and Barclays Bank completed the first five positions as the most credible banks.
Fidelity Bank and Ghana Commercial Bank, both of which are Ghanaian owned banks all made the first ten most credible banks, occupying the eighth and tenth places respectively.
The ranking was done by a team of technical analysts at Konfidants, a management consulting company based in Accra, Johannesburg and Geneva and was based on an assessment of their credibility using Credmap technology- www.credmap.com.
Explaining the details of the credibility ranking, a statement announcing the launch of the report said the ranking is “A novel “credibility-rating” engine that is capable of combining crowdrating and data mining to generate “credibility scores” of individuals and institutions using pooled data about their track record, history, commentary, biography, popular sentiment and reputation. Credmap’s algorithms mash the data together to distill the complex information into compact rankings, scores and benchmarks.”
Key amongst the index used was the quality of bank boards and senior management personnel.
All these were compiled into what has now become the Ghana Banking Credibility Index (GBCI). Some major criteria in the computation of the GBCI therefore included:
A. Executive track record of the board & management membership
B. Educational qualifications of board members and senior management personnel
C. Emphasis on continuous professional development within the studied banks.
D. Reputational factors
E. Degree of board independence from shareholder and management control and influence (this factor was analysed using a proprietary “relationship graph” and “insider connections” rating logic).
F. Consistency and accuracy in board and management communications ascertained from comments in the media, advertising, and publications, including official documentation and reports.
Managing Partner at Konfidants, Michael Kottoh, said the assessment was done from between 2017 and early 2018, adding the figures and details from the report are current.
The ranking comes at a time when two banks- UT and Capital Banks-had their licenses revoked in 2017 with five others- Royal, UniBank, Beige, Sovereign and Construction Banks all consolidated into one bank.
Mr Kottoh, said the banking crisis was fundamentally a failure of leadership – as opposed to the failure stemming from systemic risk in the wider economy.
He also mentioned weak risk management cultures as adequately measurable when personnel competence and track record, and board autonomy and capacity, are used as predictors.
“The analysis also revealed that not enough emphasis is being placed on Continuous Professional Education (CPE) for bank directors; this matters a lot for improving director competence and capacity to supervise management. We think the Bank of Ghana should impose mandatory CPE requirements and more aggressive CPE scores as part of the process of enforcing the broader ‘fit and proper’ rules directive”.
TOP 20 MOST CREDIBLE BANKS
Standard Chartered Bank
Zenith Bank (Ghana) Limited
Ecobank Ghana Limited
United Bank for Africa (Ghana) Ltd
Barclays Bank of Ghana Ltd
Societe General (Ghana) Limited
Stanbic Bank Ghana
Fidelity Bank Limited
Access Bank (Ghana) Limited
GCB Bank Limited
CAL Bank Limited
Universal Merchant Bank Limited
Bank of Africa Ghana Ltd
Bank of Baroda (Ghana) Limited
FBNBank (Ghana) Ltd
Guaranty Trust Bank (Ghana) Limited
First National Bank (Ghana) Ltd
First Atlantic Bank Ltd
GHL Bank
Republic Bank (Ghana) Ltd
Source: credmap.com
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please does it means prudential and GN banks are not credible and they are still opereating
please since when did these banks became credible?
what about ADB and NIB. This list is not credible
Read the words and think analytically when you read. It didn't say the rest not on the list were not credible, but these are the 20 MOST CREDIBLE. If it said 30 most credible banks, you might find Prudential and GN bank.
Am Amazed that such a report will be published at this crucial time of financial sector crisis.this will definitely cause panic withdrawals. come to thing of this uni bank was adjourn best bank in a year and went insolvent the next year.
The truth must be told. If this records were made public initially I don't thinks some banks would had the opportunity to mismanaged our money like that. Those banks whose names are not there should challenge the authenticity of the survey.
Hmm, where is GN bank?
People will never cease to amaze me here in Ghana. you know that Banks are still trying to recover from a potential crisis and you bring out this list. so i been a client of prudential bank after not seeing thier name on the list will cause panic to me, and subsequently, panic withdrawals. Do you want these banks survive or not. So much ***barred word*** in Ghana.