Adherence to solid corporate governance principles pays the highest dividends in times of economic trouble. Or, put in another way: When the going gets tough, the tough … embrace corporate governance. Indonesia’s Bank Ganesha proves the point: the challenging economic environment of the past three years has not derailed the bank’s growth trajectory – or, indeed, slowed its expansion. Last year, Bank Ganesha registered a 157% jump in profits on a 39% stronger revenue stream. The bank improved its performance across all relevant metrics: profitability, capitalisation, deposit volumes, and loan book.
Following its successful IPO in February 2016, Ganesha Bank not only swiftly implemented the Governance Guidelines for Public Companies but also optimised and finetuned its governance structure. Particular attention was given to improve stakeholder relations with a view to ensuring the full transparency of decision-making processes. The bank also expanded its risk management and mitigation framework with real-time active monitoring procedures and strengthened internal control systems.
The optimised corporate governance structure has allowed Bank Ganesha to remain extremely agile which, in turn, enables the bank to respond quickly to changing market dynamics – seizing opportunity and growing its market share. The bank has also invested considerable resources in the professional development of its staff with skills and talent management programmes.
The CFI.co judging panel considers the sustainable business model deployed by Bank Ganesha an example of how good governance has the ability to boost operational resilience and guarantee a solid bottom line. The judges wish to recognise the bank’s achievements and offer Bank Ganesha the 2017 Best Bank Governance Indonesia Award.