The Ghana Association of Banks (GAB) has expressed concerns over the low recovery rate of funds lost to fraud in the country's banking sector. According to GAB, only about 5 percent of funds lost to fraud are recovered. This low recovery rate has prompted the association to call for stronger intelligence-sharing among financial service providers to combat fraud.
The GAB's concerns were made public through a publication by Juliet Etefe in the Business and Financial Times. The article highlights the need for collaboration among banks and specialised deposit-taking institutions (SDIs) to share information and prevent fraudulent activities. The low recovery rate of funds lost to fraud is a significant challenge for the banking sector, which needs to be addressed.
The banking sector in Ghana has been experiencing significant growth, with banks such as the Agricultural Development Bank (ADB) PLC reporting strong financial performance. ADB PLC recorded a profit before tax (PBT) of GH¢478.5 million for the nine months ended September 30, 2026, up from GH¢447.5 million in the corresponding period of 2025. However, the low recovery rate of funds lost to fraud poses a significant risk to the sector's stability.
The GAB's call for stronger intelligence-sharing among financial service providers is timely, given the increasing cases of fraud in the sector. Banks and SDIs need to work together to prevent fraudulent activities and recover lost funds. The association's efforts to address this challenge are crucial to maintaining confidence in the banking sector.
The Ghanaian banking sector has been witnessing significant developments, including partnerships between local banks and international financial institutions. For instance, GCB Bank PLC, Ghana's largest bank, has partnered with UnionPay International to issue UnionPay debit and prepaid cards. Such partnerships are expected to enhance cross-border financial services and promote economic growth.
The low recovery rate of funds lost to fraud highlights the need for banks and SDIs to strengthen their internal controls and risk management systems. Financial institutions need to invest in technology and human resources to prevent and detect fraudulent activities. The GAB's efforts to promote collaboration and information-sharing among financial service providers are critical to addressing this challenge.
The Ghanaian banking sector is expected to continue growing, driven by initiatives such as the mobilisation of domestic capital to finance economic growth. According to Stanbic CE, Ghana must strengthen its capacity to mobilize domestic capital to reduce its exposure to external financial shocks. The banking sector's stability and growth are crucial to the country's economic development.
Key points
- Only 5% of funds lost to fraud are recovered in Ghana's banking sector.
- GAB calls for stronger intelligence-sharing among financial service providers to combat fraud.
- The low recovery rate of funds lost to fraud poses a significant risk to the stability of Ghana's banking sector.
