Central Banking and the Impact of the COVID-19 Pandemic: Some Insights from Ghana

Tutu, Patrick K.; Nakpodia, Franklin; Areneke, Geofry

Abstract

With growing public awareness of the risks posed by climate change and the international community's commitment to addressing these challenges as embodied in the Paris Agreement, the role of central banks in addressing climate change risks and supporting the development of green finance has become increasingly prominent in recent years. Indeed, a growing number of central banks have implemented guidelines such as green finance policies, while others have integrated climate risk into prudential frameworks. However, the extent of central banks' engagement with the sustainability subject varies among developed and developing economies, as scholars suggest that institutional challenges across developing countries have hampered central banks' intervention in their sustainability initiatives.

Given the need to broaden the literature, we examine the activities of the central bank in Ghana. In its effort to enhance sustainability, the central bank of Ghana (i.e., Bank of Ghana or BoG) implemented various strategies in the last decade to stimulate sustainability awareness in Ghana's banking sector. These policies aim to assist banks to incorporate emerging global issues such as human security, socially responsible stewardship, gender equality, corporate integrity, and climate change into the core banking operation. While there is a consensus that the Bank of Ghana cannot ignore the sustainability issues highlighted above, there remains a contention regarding the extent to which they should be incorporated into existing operational frameworks. This chapter aims to examine the application of sustainability policies by the BoG, explore how the Covid-19 pandemic has impacted BoG's sustainability strategies, and lastly, investigate how the banking sector has responded to these policies.

Citation

Tutu, P. K., Nakpodia, F., & Areneke, G. (2023). Central Banking and the Impact of the COVID-19 Pandemic: Some Insights from Ghana. In Central Banking in a Post-Pandemic World: Challenges, Opportunities, and Dilemmas (257-272). (1). London, UK: Routledge. https://doi.org/10.4324/9781003323280-15

• Online Publication Date: Aug 25, 2023
• Publication Date: 2023
• Deposit Date: Aug 10, 2023
• Publisher: Routledge
• Pages: 257-272
• Edition: 1
• Book Title: Central Banking in a Post-Pandemic World: Challenges, Opportunities, and Dilemmas
• Chapter Number: 14
• ISBN: 9781003323280
• DOI: https://doi.org/10.4324/9781003323280-15
• Public URL: https://durham-repository.worktribe.com/output/1715411