Ghana’s Financial Sector Gets Boost from Compliance Regulations
The Bank of Ghana has been empowered to exercise overall supervisory and regulatory authority over all banking and non-banking financial institutions in Ghana. This is aimed at establishing a sound and efficient banking system that safeguards depositors’ interests and contributes to economic growth.
Regulatory Framework
The regulatory framework governing the operations of banks, non-bank financial institutions, and forex bureaux in Ghana includes several key pieces of legislation:
- Bank of Ghana (Amendment) Act, 2016
- Banks and Specialised Deposit-Taking Institutions Act, 2016
- Non-Bank Financial Institutions Act, 2008
- Companies Act, 2019
- Various notices, directives, circulars, and regulations issued by the Bank of Ghana
Role of the Bank of Ghana
As the primary regulator of the financial sector in Ghana, the Bank of Ghana is responsible for ensuring that the system is stable and operates smoothly to facilitate wealth creation, economic growth, and development. The bank’s functions and responsibilities are defined in Act 612 and Act 673, which outline its role in regulating and supervising the banking system, credit system, and financial institutions.
Key Responsibilities
The Bank of Ghana exercises its mandate by ensuring that:
- Depositors’ funds are safe
- Banks maintain solvency, good quality assets, adequate liquidity, and profitability
- Banks adhere to statutory and regulatory requirements
- Engage in fair competition
- Maintain an efficient payment system
Supervisory Functions
The Bank of Ghana also ensures the protection of supervisors and enforces compliance with laws and regulations. To enhance its supervisory functions, the bank has aligned its approach with the Basel Core Principles for Effective Banking Supervision.
Commitment to Regulatory Excellence
The Bank of Ghana’s commitment to regulatory excellence dates back to 1958, when it issued its own currency, the Ghana pound, and took over the issuance of currency notes and coins from the West African Currency Board. Since then, the bank has continued to evolve and adapt to changing circumstances, with a focus on promoting financial stability and growth in Ghana.
This move is expected to further strengthen the country’s financial sector and boost investor confidence.