BoG rolls out more regulations to protect banking industry

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The Bank of Ghana (BoG) has announced plans to roll out more regulations and directives in the coming weeks to strengthen its supervisory duties of the financial system.

Parliament recently passed the Banks and Specialized Deposit Taking Bill to address gaps and inconsistencies in the banking laws, while it deepens cooperation with banks in the country.

Speaking over the weekend at the Ghana Banking Awards, the Deputy Governor of the Bank of Ghana, Dr. Johnson Asiamah announced that with passage of the bill the Bank of Ghana in collaboration with the German government will set up a deposit protection system to enhance its monitoring role.

“With the passage of the Ghana Deposit taking bill I am happy to inform you that the Bank of Ghana in collaboration with German government will soon establish a deposit protection system in Ghana for the first time in our history,” he said.

He explained that it will ensure protection for small depositors and enhance the safety of the financial system.

He added that the new act will be complemented by a number of regulations and directives to help enhance the environment for the conduct of banking.

“This will include corporate governance regulation, licensing regulations, outsourcing directives,  risk management directives, external auditors regulation, mergers and acquisition directives, and finally information technology standards will be addressed,” he said.

He stated that the focus of the central bank is to protect depositors to increase investment in the country.

Recounting some strict measures that would be taken, Dr. Asiamah stated that the central bank will seriously sanction institutions that fail to meet requirements to prevent debacles in the banking industry.

“I will use this opportunity to encourage all banks and financial institutions to maintain strict compliance of all the regulations and directives that will be implemented very soon,” he said.

He stressed that a robust and secured deposit system is fundamental to the development of the banking industry.

Source: Lawrence Segbefia/citibusinessnews.com/Ghana

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