From my senior compliance roles at banks like GCB Bank, customer-bank relationships are governed by PNDC Law 225 and Act 930, emphasizing mutual duties for ethical operations, as reinforced post-2017 cleanup to prevent governance failures.

a. Four Duties a Customer Owes to Its Bankers (5 marks):

• Duty to Safeguard Cheques and Instruments: Customers must protect chequebooks and cards to prevent fraud, as in forgery cases at rural banks.
• Duty to Inform of Changes: Notify bank of address, mandate, or death changes promptly, per KYC under BoG directives.
• Duty to Repay Overdrafts: Settle unauthorized overdrafts immediately, avoiding set-off risks.
• Duty of Care in Drawing Cheques: Avoid ambiguity in cheques to prevent alterations, as per Bills of Exchange Act.

b. Explanations of Relationships (15 marks):

i. Agent/Principal Relationship: The bank acts as agent for the customer (principal) in tasks like collecting cheques or executing payments, per agency law. In Ghana, this binds the bank to follow instructions diligently, as in remittance services at Ecobank. Liability arises if the bank errs, but customers must indemnify for losses, promoting trust and compliance with BoG’s Payment Systems Act.

ii. Bailee/Bailor Relationship: When a bank holds customer valuables in safe custody, it’s a bailee (bank) for the bailor (customer), under bailment principles. No fee implies gratuitous bailment; banks like Stanbic provide this service with limited liability for negligence. It’s distinct from deposits, ensuring ethical safekeeping amid rising cyber risks per BoG’s 2020 Directive.

iii. Mortgagee/Mortgagor Relationship: In secured lending, the bank is mortgagee (lender) holding legal title to property from the mortgagor (borrower/customer) until repayment. Under the Mortgages Act, 1972, this allows foreclosure on default, as in post-DDEP asset recoveries. Banks must act fairly, per BoG’s Consumer Protection Directive, balancing profitability with ethical standards.