Financial Crime World

Bank of Ghana Regulatory and Supervisory Activities Report

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Regulatory Framework

The Bank of Ghana operates under a comprehensive regulatory framework that ensures the stability and integrity of the financial system. The key legislation governing our activities includes:

  • Banking Act, 2004 (Act 738): This act provides the legal basis for the regulation and supervision of banks in Ghana.
  • Central Banks and Financial Institutions (Establishment) Act, 2007 (Act 787): This act establishes the Bank of Ghana as a central bank and financial regulator.

In addition to domestic legislation, we also adhere to international standards and best practices, including:

  • Basel III: This global regulatory framework aims to strengthen banks’ capital adequacy, liquidity, and risk management.

Supervisory Activities

Our supervisory activities are designed to ensure that supervised institutions operate in a safe and sound manner. These activities include:

  • On-site examination: Our supervisors conduct regular visits to assess certain aspects of an institution’s operations.
  • Off-site monitoring: We regularly monitor the financial performance of supervised institutions to identify potential risks.

In cases where regulatory breaches occur, we may impose sanctions on:

  • Institutions
  • Key management personnel
  • Board directors
  • Significant shareholders

Collaboration with Other Regulators

We work closely with other regulatory authorities to ensure a unified approach to financial regulation. This includes:

  • Financial Stability Council: This council brings together regulatory authorities to identify and evaluate threats to the stability of the financial sector.
  • Memoranda of Understanding (MOUs): We have signed MOUs with home supervisors of Ghanaian subsidiaries to share supervisory information.

Capacity Development

We recognize the importance of capacity development in ensuring effective supervision. To this end, we receive support from international organizations, including:

  • IMF
  • AFRITAC West 2
  • Bank of England
  • Toronto Centre
  • World Bank

We engage long-term technical experts to build the capacity of our supervisors in areas such as:

  • Basel II/III Capital Framework
  • Risk-Based Supervision
  • Climate-Related Financial Risk

Emerging Issues

In response to emerging issues, we have issued regulatory guidance on:

  • IFRS expected credit loss (ECL) impairment model in light of the COVID-19 pandemic.
  • Regulatory reliefs for RFIs that fully participated in the Domestic Debt Exchange Programme (DDEP).

Conclusion

The Bank of Ghana is committed to effectively regulating and supervising the banking industry to promote the safety and soundness of institutions and ensure the stability of the financial system. We will continue to work tirelessly to address emerging issues and maintain a robust regulatory framework.