The Governor of the BoG, Dr Ernest Addison explained that this will strengthen the regulator’s efforts to maintain the gains made so far in the financial sector.
The Bank of Ghana (BoG) has said that it will fully implement the directive on financial holding companies by 2019.
The Governor of the BoG, Dr Ernest Addison explained that this will strengthen the regulator’s efforts to maintain the gains made so far in the financial sector. Speaking at the Annual Dinner of the Chartered Institute of Bankers Dr Addison said they took this decision due to the prevalent levels of related party transactions of the banks that were resolved.
“This has informed our decision to operationalize, in 2019, the directive on financial holding companies which seeks to facilitate effective consolidated supervision of regulated financial institutions and ensure that holding companies and affiliates of banks and SDIs do not take advantage of banks and SDIs within such groups at the expense of depositors and other creditors.”
He added that the BoG must finalise the directive on corporate governance by the end of the year since banks have duly submitted their feedback and input.
On the Minimum Capital Requirement deadline, Dr Addison said the banks are working tirelessly to meet the regulation. He added that this will see them transition into the full implementation of the Basel II/III pillar 1 capital measurement.
Commenting on the Non Performing Loans, he said he was hopeful that despite the marginal decline, the issue should normalise with the completion of the draft Credit Reporting Regulations and the draft Borrowers and Lenders Bill.
“When completed and passed by Parliament, these pieces of legislation should help improve the credit underwriting process and facilitate enforcement of loan and collateral agreements by banks and other regulated institutions.”