Skip to main content

BoG to adopt measures to ensure strong and stable financial system

By: Fred Yaw Sarpong

The Bank of Ghana (BoG), the regulator of the banking industry is adopting measures to ensure that the country’s financial system remains strong and stable.

This includes the strengthening of the legal framework for supervising and regulating the financial system in the country.

According to the central bank, the formulation of the new Banks and Specialized Deposit-Taking Institutions Bill and the Ghana Deposit Protection Bill are part of the measures been put in place to ensure strong and stable financial system.

The regulator said these bills have been submitted to Parliament and once approved, the BoG will develop regulations needed to fully implement these laws by June 2016, with assistance from the long-term IMF advisor.

This is part of a memorandum update submitted by the Government of Ghana, during the second review of the performance of Ghana’s economy by the International Monetary Fund.

“A special diagnostic external audit of commercial banks to review asset classification and valuation, provisioning and loan restructuring practices, according to both the BoG prudential requirements as well as International Financial Reporting Standards (IFRS), was completed in September (end-September 2015 SB) and a final report was due by the end of December,” according to the memorandum.

It noted that in parallel, the BoG has evaluated non-performing government guaranteed/quasi-fiscal exposures and their effect on banks’ loan books. “The preliminary results indicate some differences in the interpretation of the guidelines relating to impairments,” it added.

After reviewing these discrepancies with the banks, the BoG said it will take action to remedy under-provisioning and require banks to increase capital, if necessary, in line with a timeline, which will be agreed with the banks.

“The BoG will also issue a guideline to consolidate earlier directives issued on the IFRS as well as give a position clarifying grey areas of the standard. Areas of the prudential norms, which are not too clear are also being reviewed,” the statement noted.
The memorandum said the BoG has been collaborating with AFRITAC WEST 2 to build capacity for implementing Basel II/III and a long term advisor (from the Fund) commenced duty in October last year to assist the Bank on banking supervision.

The BoG has also requested Fund staff to conduct a Financial Sector Assessment Program in 2017.


Popular posts from this blog

PFM Act to guide local government authority borrowing

By: Fred Yaw Sarpong
The bill, Public Financial Management (PFM) Act 921 which has been passed into law by Parliament is to guide public institutions especially the local government authority borrowing. The law was pass on 3rdAugust, 2016
According to the law, local government authority, a public corporation or state-owned enterprise is liable for the debt and other obligations without recourse to Government, unless otherwise explicitly guaranteed by Government in accordance with this Act.
Madam Eva Esselba Mends, the Chief Economic Officer and Group Head of PFM at the Ministry of Finance told the Daily Express that the law involves a lot but it also give instruction to how state institutions can borrow especially with the  local government authority.
She mentioned that there is no specific law in place that gives direction as to what local authority can do when it comes to borrowing by the authority. Other public corporations sometimes borrow with huge amount for their operation but loca…

Vodafone fined a record £4.6 million for IT blunder

A top-up error left pay-as-you-go customers out of pocket and complaints were mishandled
Vodafone has been fined a record £4.6 million by the telecoms watchdog forleaving thousands of customers out of pocket in a disastrous IT blunder.
Ofcom found that the operator mishandled complaints and failed to pay into the accounts of more than 10,000 pay-as-you-go customers when they topped up their credit.
The top-up error, which cost customers £150,000 over 17 months in 2014 and 2015, stemmed from the moving of 28.5 million accounts to a new billing system.Errors in billing data and price plans caused so much protest that it made Vodafone the most complained-about mobile network in Britain.The technical issues were resolved by April 2015 and all accounts are now on the new system, Vodafone said.
Lindsey Fussell, Ofcom’s consumer group director, said:“Vodafone’s failings were serious and unacceptable, and these fines send a clear warning to all telecoms companies.”
The company says that it has ref…

Enterprise Life inaugurates social centre for Kumasi SOS village

By: Fred Yaw Sarpong
Enterprise Life and Sanlam South Africa together with SOS Children’s Villages Ghana have jointly inaugurated a newly constructed social centre at the SOS Children’s Village, Kumasi in the Ashanti region.
The project, valued at GHc485,000.00 forms part of Enterprise Life and Sanlam-South Africa’s corporate social responsibility (CSR) to promote quality education and health for vulnerable children in Ghana.
The newly established social centre provides a suitable multi-purpose facility with a spacious auditorium among others to host different social activities related to child growth and development and will cater for both SOS children and students of the Hermann Gmeiner School.
The centre also offers the beneficiaries the opportunity to freely socialize and participate actively in educational oriented activities such as school concerts, art exhibitions and workshops.
The Executive Director of Enterprise Life, Mrs. Jacqueline Benyi expressed satisfaction that her outf…