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Ghana Interbank Payment and Settlement Systems Limited (GhiPSS) Introduces New Services for Financial Institutions

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Accra, Ghana - In a move to further enhance financial inclusivity in Ghana, Ghana Interbank Payment and Settlement Systems Limited (GhiPSS), has introduced several new services aimed at facilitating payments between financial institutions, fintech companies, and telecommunications companies.

New Services

  • Near-real-time transfers and instant transfers available through GhiPSS Instant Pay, which enables the transfer of funds across bank accounts within minutes.
  • Customers can now transfer funds from their bank accounts to mobile money wallets and vice versa, while payments can be made directly from bank accounts or mobile money wallets using cards.

Regulatory Challenges Facing Ghana’s Banking Industry

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Despite these advancements, the banking industry in Ghana is facing several regulatory challenges that require immediate attention. Some of the key challenges include:

  • Liquidity compliance: Banks are required to maintain a reserve of 9% of their weighted average deposit with the central bank, failing which they will be penalized.
  • Anti-money laundering compliance: Financial institutions must report suspicious transactions or flag issues of money laundering to the appropriate authorities.
  • Registration of charges
  • Asset quality
  • Experienced management teams

Capital Adequacy Requirements and Consumer Protection

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The Bank of Ghana (BoG) has also emphasized the importance of capital adequacy requirements, which pose a challenge for some banks. Non-performing loans and related party transactions contribute to the inability of some banks to satisfy these requirements.

Additionally, banks are subject to consumer protection rules, with the BoG responsible for enforcing these regulations. The bank has issued guidelines for financial service providers to ensure that the interests of customers and stakeholders are adequately protected.

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In the coming years, it is anticipated that new legislation and amendments will be brought into force to deal with unresolved issues flowing from Act 987 and possibly to regulate cryptocurrencies. The recent enactment of Acts 1038 and 1044 aims to build consumer confidence in Ghana’s digital transformation agenda.

It is crucial for financial institutions to remain vigilant and adapt to these changing regulatory requirements to ensure the continued growth and stability of the banking industry in Ghana.

Source: Ghana Interbank Payment and Settlement Systems Limited (GhiPSS)