Of ghana entitled bank of ghana act, 2002 an act to amend and consolidate the law relating to the bank of ghana and to provide for related matters. It is instructive that the finance miscellaneous provisions act no. Revocation, suspension, or restriction of licence 8. Ghana chapter to banking regulation 2020 does not exists. The bank of ghana with its greater power has improved its regulatory activities as compared with the prefinancial reform period.
Ghana has a new foreign exchange act, 2006 act 723 which became effective on december 29, 2006. Banks and specialised deposittaking act 930 institutions act, 2016 arrangement of sections section 1. Banking laws and regulations ghana laws and regulations gli. Law relating to banking chartered institute of bankers, ghana. The 2004 act repealed the former banking act 1971 and foreign exchange dealers act 1995, and consolidated the laws relating to the. If you wish to enquire as to whether this country chapter is available in a previous edition of energy in print or pdf format, contact us here. Financial sector reforms and bank performance in ghana. The nigerian experience 12 2 survey findings 16 3 an overview of the economy 28 4 key developments in the banking industry 32 5 quartile analysis 36 6 market share analysis 56.
Parliament of the republic of ghana banking act 2004. This second volume banking and financial laws of ghana 19982006 is a compendium of banking and financial laws passed in ghana between 1998 and 2006. Regulate institutions that carry on banking business. The following are exceptions to the secrecy rule in ghana. Bog prescribes new banking rules ghana homepage, resource. Banking act ofthe federal republic of germany kreditwesengesetz, kwg page 5 of81 1. Supervisory and enforcement role of bank of ghana functions of the bank of ghana 6.
Law relating to banking chartered institute of bankers. Examination of books of person carrying on banking business without a licence 5. Pwc 2018 ghana banking survey 1 contentsa message from our csp 2a message from the executive secretary of ghana association of bankers gab 6a message from our tax leader 81 recapitalising banks. Act 774 nonbank financial institution act, 2008 republic of ghana the seven hundred and seventyfourth act entitled nonbank financial institutions act, 2008 an act to provide for the regulation of nonbank financial institutions and for related purposes. Parliament of the republic of ghana the banking amendment.
Developments in the banking sector created the need for a new banking bill. Apr 04, 2019 the banks and specialised deposittaking institutions act 2016, act 930, is the primary statute governing banking industry in ghana. Of particular interest is the expected requirement for banks to, at all times, maintain a capital buffer that reflects the level of risk inherent in their asset portfolio. The finance act introduces changes to the companies. The companies act, 2019 act 992 has been in the works since 2018 and replaces the companies act, 1963 act 179. The companies code 1963 act 179 regulations of hfc bank ghana limited 1 the name of the company is hfc bank ghana limited 2 the businesses which the company is authorized to carry on are. The finance act introduces changes to the companies income tax act, value added tax act, petroleum profits tax. Nevertheless, we found some uneasiness in the banking sector about the. The bank of ghana serves as the countrys central monetary authority. Eligibility restricted to ghanaian corporate bodies 4. This paper details republic of ghana banking act, which aims to.
Appointment of receiver for failure to hold licence 6. Parliament of the republic of ghana banking act 2004 act. In ghana, the enactment of the new banking act of 2004, act 673, introduce universal banking license, which enable banks to provide various banking services. Emerging developments in the banking industry of ghana.
Legal framework for supervision the key legal framework for supervision of banks in ghana is the banking act 2004 act 673 as amended. This years survey, a buildup on last years survey, is premised on the wider banking sector reforms being driven by bog with an overarching objective of modernising and strengthening the banking sector to adequately support economic growth and transformation. Ghana banking act 2004 consolidation of the banking laws in ghana. Changes we have not yet applied to the text, can be found in the changes to legislation area. The act is divided into nine parts and covers the following topics. At a very high level, the new act seeks to introduce improved corporate governance standards for companies operating in ghana. The 2004 act is the enabling legislation for all financial institutions falling under the purview of the bank of mauritius. Duties of liquidator section 36 to 42 of act 180 conversion of private liquidation to official liquidation. Bank of ghana act, 2002 act 612 2 without prejudice to subsection 1 the bank shall support the general economic policy of the government and promote economic growth and effective and efficient operation of banking and credit systems in the country, independent of instructions from the government or any other authority. Definitions 1 credit institutions are enterprises which conduct banking business commercially or on a scale which requires a commercially organised business undertaking. Banks and specialised deposit taking act 930 institutions act, 2016 9 6 for the purpose of this section, authorised agent includes an apex body, network, industrial association, selfregulatory organisation or any other person recongnised by the bank of ghana. Banks and specialised deposit act 2016 bank of ghana. Ghana has a new companies act the companies act 2019 act. Banks and special deposit act, 2016 date of assent.
By common consent, ghanas banking sector had performed poorly in the past, but from the late 1980s various reforms have been introduced which were intended to strengthen the sector. The ghana provides information in the future provides essential insights into the current legal issues, readers with expert analysis of legal, economic and policy developments with the worlds leading lawyers. Recapitalization of banks has been a topic of discussion be tween politicians, economists, bank regulators, academicians and the. The new act also saw the introduction of the universal banking license, which allows. The introduction of the new banking act in 2004 also led to the elimination of secondary reserves and adjustments in the minimum capital. The banking act 2004 2004 act was enacted in october 2004 and came into operation by proclamation on 10 november 2004. Pwc 2018 ghana banking survey 2 build up to this years survey bank of ghana bog, through a directive issued on 11 september 2017, increased the minimum stated capital requirement of universal banks operating in ghana from ghs120 million to ghs400 million and required that banks comply by the end of december 2018. The current banking legislation banks and special deposit taking institutions act, 2016 act 930 makes reference to this accord. Banking amendment act, 2007 act 738 ii the purchase of bonds or other securities issued by the government of ghana or any other securities that may be approved by the bank of ghana. Ghanas banking and finance industry consists of 28 private banks. Macroeconomic context the republic of ghana is west africas second largest economy and has a population of about 25. Act 673 banking act, 2004 6 2 the bank of ghana may interview the promoter, directors and proposed senior management personnel in the course of an appraisal and may also inspect their books and records to satisfy itself about the representations made or information furnished by the applicant. It also oversees the monetary policies and advises the government on their implementation. The changing face of banking in ghana and the implications.
Balancing inclusive growth with financial stability 4 all the banks in ghana are class i universal banks doing business across all areas of banking. If you wish to enquire as to whether this country chapter is available in a previous edition of energy in print or pdf. Currently, there are 32 registered banks bank of ghana, 2016 with seven listed on ghana stock exchange gse. Constitution of the republic of ghana amendment act, 1996. Bank of ghana, the central bank of ghana, has since issued notices providing guidelines on the new foreign exchange act. Ghana s financial system has gone through a process of liberalization, restructuring and transformation over the last two decades. Functions of the bank of ghana part iilicensing of banks 3. The banks and specialised deposittaking institutions act 2016, act 930, is the primary statute governing banking industry in ghana. The banking amendment act 2007 act 738 is an act passed by the parliament of the republic of ghana to amend the banking act, 2004 act 673. Before july, 1970, the bank of ghana was given a certain amount of control over the operations of banking institutions by sections 2935 of the bank of ghana act, 1963 act 182. Nonbank financial institutions act, 2008 act 774 11. Among the reasons for the current bill banks and special. Role of the bank of ghana licensing of banks and specialised deposittaking institutions 4.
Act 774 nonbank financial institution act, 2008 arrangement of sections section application and licensing 1. Since the banking and financial laws of ghana 19611998 was published in 2001, staff have attested to its benefits in various ways, and there continues to be strong demand for copies. The act aims to facilitate the establishment of an international financial services centre that seeks to attract foreign direct investment, income from license fees payable in foreign currencies, and. Part i the bank of ghana, its objects and shares continued legal existence of bank of ghana 1. The minimum capital was initially increased to ghs 60 million in 2007 and then in 20 it was increased to ghs 100 million. Ghanas financial system has gone through a process of liberalization, restructuring and transformation over the last two decades.
Ghana has a new companies act the companies act 2019. The banking act 2004 act 673 is an act passed by the parliament of the republic of ghana to amend and consolidate the laws relating to banking, to regulate institutions which carry on banking business and to provide for other related matters. The banks duty of secrecy and confidentiality is central to the maintenance of confidence in the financial system. This came into force on 14 september 2016 to repeal the banking. Criminal code, 1960 act 29 consolidated up to 1999. Banks and special deposit act, 2016 act 930 date of assent.
Banks in ghana overview, guide to top 10 banks in ghana. Overview of the banking industry the banking system as at end march 2016 comprises the bank of ghana, 29 universal banks excluding arb apex bank which is a minicentral bank for rural banks, 9 rural and community banks, 61 nbfis, and 555 mfis. The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Act 673 banking act, 2004 6 2 the bank of ghana may interview the promoter, directors and proposed senior management personnel in the course of an appraisal and may also inspect their books and records to satisfy itself about the representations made or information furnished by the. The 2004 act repealed the former banking act 1971 and foreign exchange dealers act 1995, and consolidated the laws relating to the business of. Act 630 ghana maritime authority act, 2002 e iii the ghana shippers council, and two women with specialised knowledge in the maritime industry nominated by the minister. For the avoidance of doubt, the government of ghanas 5year bond due december 2011 and listed on the market is available to nonresident foreigners. Licensing of banks and specialised deposittaking institutions. Pwc 2017 ghana banking survey 1a message from our csp 2a message from the executive secretary of ghana association of bankers 4a message from our tax leader 6 1 ccapitalisation of banks 8 2 survey findings 10 3 overview of the economy 24 4 overview of the banking industry 28 5 quartile analysis 30 6 market share analysis 42 7 profitability and efficiency 50.