Ghana pro­poses new rules for fi­nan­cial com­pa­nies

Banking Frontiers - - News -

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.

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