Ghana proposes new rules for financial companies
The Bank of Ghana has issued a draft directive on financial holding companies seeking inputs from the financial community on how to properly regulate the sector. The directive is intended to facilitate understanding of the requirements for the adoption and operations of a financial holding company in Ghana. It covers the definition and structure of a financial holding company, registration requirements, ownership and control, governance, permissible and non-permissible activities, statutory regulation, as well as supervision. It also seeks to facilitate effective consolidated supervision of the regulated financial institutions and to further engender the safety and soundness of the banking system. According to the new draft directive, a financial holding company is one that controls a bank or specialized deposit taking institution whose operation is subject to the Bank of Ghana’s regulations.