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Banking Regulations Compliance Key to Stability in Ghanaian Financial System

Accra - The Bank of Ghana plays a crucial role in ensuring that the country’s financial system operates smoothly and efficiently, facilitating wealth creation, economic growth, and development.

Regulatory Framework

The central bank’s regulatory and legal framework is designed to achieve a sound banking system in the interest of depositors and other customers. This framework includes:

  • Bank of Ghana Act 2002
  • Bank of Ghana (Amendment) Act, 2016
  • Banks and Specialised Deposit-Taking Institutions Act, 2016
  • Non-Bank Financial Institutions Act, 2008
  • Companies Act, 2019

Responsibilities

The Bank of Ghana is responsible for:

  • Regulating and supervising the banking system and credit system to ensure a safe and sound operation
  • Appointing an officer as head of Banking Supervision Department
  • Considering reforms of laws relating to banking business
  • Ensuring depositor funds are safe
  • Maintaining solvency and good quality assets
  • Enforcing statutory and regulatory requirements

Basel Core Principles for Effective Banking Supervision

The Bank of Ghana has designed its supervisory functions to be consistent with the Basel Core Principles for Effective Banking Supervision, aimed at enhancing the legal and regulatory framework governing banking operations in Ghana.

History of Financial System Development

Ghana’s financial system has undergone significant changes since Independence, with the Bank of Ghana issuing its own currency notes and coins in 1958. Since then, the central bank has been responsible for ensuring that the financial system operates efficiently and effectively.

Maintaining Stability

The Bank of Ghana is committed to enforcing regulations and ensuring compliance by banking institutions, including:

  • Licensing
  • Withdrawal of license
  • Arrangement for examining and monitoring banks
  • Powers and duties of supervisors

Priorities

The country’s financial regulator has also been working towards:

  • Maintaining an efficient payment system
  • Promoting fair competition among banks
  • Ensuring that the interests of depositors are protected

With its regulatory framework in place, the Bank of Ghana is well-equipped to ensure a stable and effective banking system in Ghana.