Banking Awards Survey Begins Nationwide
5/5/2012 9:44:27 AM -
The retail and corporate customer survey and, collection of financials towards the selection of winners for the 2011 Ghana Banking Awards has begun nationwide.
The survey sets the stage for preparations towards the awards on Saturday, May 26, 2012 at the Accra International Conference Centre.
According to the Chief Host and Head of the Awards Planning Board, Mr Willing Vanderpuije, “Synovate, an IPSOS affiliate and an international research organisation, is organising the corporate customer survey whilst Westpoint Consulting is handling the Retail customer survey”.
“It is expected that a sample size of 3,700 clients of banks would be surveyed in the next few days” he said.
Mr vanderpuije said each bank had provided a corporate customer list of 200 each from which the research agencies will randomly select the respondents.
He said there would be customer intercepts in selected banking halls for the retail survey in accordance with a new formula worked out by the banks.
“Banks have agreed that the retail sample size per bank should reflect the total number of customers and number of branches of any particular bank”, he said.
Mr Vanderpuije also noted that the sample size to be surveyed for bigger banks would, therefore, be larger depending on the size of the bank.
“Banks are also in the process of submitting their financials and other data as at 31 December 2012 to be analysed by KPMG, the event statisticians.
On areas improved towards the awards, he said “In the last few weeks participating banks have been working on improvements to the methodology and approach document”.
“They have also revised the questionnaire being applied, removing redundant questions and making others more user friendly” he added.
These improvements, he said have been vetted and approved by the Technical Committee.
Explaining the rationale for the technical committee, the Chief Host stated that “this is the only competition where the players themselves set the rules and play by them”.
In the area of competitive pricing for instance, he said the committee agreed that the Bank of Ghana published APR of banks will be applied and not pricing data received from Banks.
In the past, the “LACE “method was applied to choose the best performing Bank in the area of Financial Performance.
This included examining and aggregating mainly banks’ Liquidity Risk, Assets Quality, Capital Adequacy and Earning Capacity.
These are purely financial fundamentals and the recent global financial crisis has called into question such metrics.
Participating Banks have therefore agreed to examine risk factors and business value evaluation to achieve more robust results.
The LACE methodology is therefore being replaced with Moody’s Ratings Global Methodology for assessing Bank Financial Strength.
This means Market Share and Sustainability, Geographical Diversification, Earnings Stability, Earnings Diversification, Corporate Governance, Controls and Risk Management, Financial Reporting Transparency, Credit Risk Concentration.
Liquidity Management and Market Risk Appetite among others will also be examined.
In addition to the existing parameters applied, banks are examining other growth factors including increases in full time employees, remuneration, number of branches, new services, growth in deposits, growth in loans, and growth in Assets.
Most important of all, growth will now be measured over a period of three years performance.
Mr Vanderpuije used the opportunity to pay tribute to “our sponsors and thank them all for their support of the awards which aim at improving banking services in Ghana”.