ADB Working Towards Compliance

The Agricultural Development Bank (ADB) has established a programme for implementing best practice processes for risk and capital management and for achieving compliance with the Bank of Ghana’s new regulatory capital framework.

Under Bank of Ghana’s adoption of the internationally-recognised Basel II, all Ghanaian banks will have to comply with more stringent new regulations allocating capital in a more risk-sensitive way, and ensure that risk management is recognised by the respective bank’s Board of Directors as strategically crucial to the interests of the bank and its stakeholders.

ADB has chosen to work with international risk and compliance specialists, Quadrant Risk Management International (Quadrant), to assist with both the planning and implementation of the new processes and systems required to achieve full compliance with Bank of Ghana’s adoption of the international Basel II “Pillar 1” qualitative capital allocation standards and the more qualitative “Pillar 2” governance and risk management practices.

As part of the project, ADB is installing Quadrant’s SAB2 Basel II Standardised Approaches software for regulatory capital calculation and reporting. The implementation will cover all asset classes using the Basel II Standardised Approaches for credit and market risk, as well as the Basic Indicator Approach for operational risk.

“Enhanced risk management capability is central to our agenda, both to better serve our customers and shareholders, and to comply fully and promptly with Bank of Ghana’s new governance and capital requirements. Quadrant’s risk and compliance expertise and regulatory reporting software will facilitate and accelerate the realisation of both of these objectives”, said Mr Stephen Kpordzih, Managing Director of ADB.

“Quadrant’s SAB2 Basel II software will allow us and our regulator to have more granular data and reports around the bank’s risk profile and portfolios. There will be corresponding business benefits, as well as assurance of our compliance with the new, more risk-sensitive Bank of Ghana capital standards”, Mr Latif Agyei, Head of Risk at ADB added.

Paul Ashton, Director and Head of Consulting at Quadrant said “We’re delighted to be chosen by ADB to support the bank in its drive to fully implement international best-practice GRC disciplines, especially since this is our first assignment in a country and region strategically important to Quadrant”.

ADB is a state-owned development bank created to promote and modernise the agricultural sector through affordable but profitable financial intermediation.

Now a full-service institution supporting the financing needs of Ghanaian consumers and businesses alike, it remains dedicated to providing finance for sustainable growth in Ghana ’s agricultural sector through both traditional and innovative programmes and products.

Quadrant Risk Management (International) Limited was formed in the UK in 1991 as a specialist consultancy by risk management professionals who had previously operated at board level in financial institutions.

In 2001, Quadrant diversified by developing its domain expertise into the B2 – Quadrant’s risk and compliance suite – in response to the Bank for International Settlement’s Basel II Capital Accord. SAB2 was introduced in 2006 as a Standardised Approach solution to meeting the requirements of Basel II.