Featured Product

    BOG Publishes Update on Status of Banking Sector Reforms in Ghana

    January 04, 2019

    BOG published an update on the status of banking sector reforms in Ghana. Following the recapitalization exercise that ended on December 31, 2018, there are now twenty three universal banks operating in Ghana.

    Ghana is undergoing strengthening of the regulatory and supervisory framework and the just-ended recapitalization exercise has re-positioned the banking sector as better capitalized, liquid, stronger, and more resilient. Sixteen banks (mentioned in the update) have met the new minimum paid-up capital requirement of GHC 400 million mainly retained income and fresh capital injection. Bank of Ghana approved a request for a voluntary winding up of the operations of Bank of Baroda (Ghana) Limited, effective from December 31, 2018. Bank of Baroda's winding up is the result of the Government of India's decision to rationalize the overseas operations of branches/subsidiaries of Indian public sector banks.

    Pursuant to Section 123 of the Banks and Specialized-Deposit-Taking Institutions Act, 2016, BOG has revoked the banking licenses of Premium Bank Limited and Heritage Bank Limited. Premium bank had continuously breached the capital adequacy ratio (CAR) requirement since December 20178. Efforts to correct the capital inadequacy did not work and the bank reported a CAR of negative 125.26% with a capital deficit of GHC 528.33 million, implying that the bank is insolvent. Investigation revealed that the bank obtained its banking license through the use of suspicious and non-existent capital. Furthermore, the prudential returns submitted to the Bank of Ghana wee inaccurate. In addition, Heritage Bank Limited lost its license because its capital appears to have come from suspicious sources and it failed to meet the GHC 400 million capital required as of December 31, 2018, among other issues. 

     

    Related Links

    Keywords: Middle East and Africa, Ghana, Banking, Capital Adequacy, Recapitalization Exercise, Bank Licenses, Banking Reforms, BOG

    Related Articles

    PRA Publishes Q&A on Property Valuation Requirements Under CRR

    PRA published a set of questions and answers (Q&A) covering common queries regarding residential and commercial property valuations, for the purpose of the Capital Requirements Regulation (CRR), during the period of disruption caused by COVID-19 pandemic.

    May 29, 2020 WebPage Regulatory News
    News

    IOSCO Consults on Outsourcing Principles for Operational Resilience

    IOSCO proposed updates to its principles for regulated entities that outsource tasks to service providers.

    May 28, 2020 WebPage Regulatory News
    News

    MAS Consortium to Develop AI Fairness Metrics for Credit Scoring

    MAS announced that the first phase of the Veritas initiative will commence with the development of fairness metrics in credit risk scoring and customer marketing.

    May 28, 2020 WebPage Regulatory News

    BoE Updates Definitions for BTL Data Collection

    BoE published the Statistical Notice 2020/4 to update the buy-to-let (BTL) Phase 2 and Phase 3 definitions for the Interest Rate Type data item.

    May 28, 2020 WebPage Regulatory News
    News

    FSI Examines Financial Stability Implications of Payment Deferrals

    FSI published a brief note that examines challenges facing the banking sector as a result of the payment deferral programs put in place to support borrowers affected by the COVID-19 pandemic.

    May 28, 2020 WebPage Regulatory News
    News

    PRA Finalizes Policy on Prudent Person Principle Under Solvency II

    PRA published the policy statement PS14/20, which contains the supervisory statement SS1/20 and the feedback to responses to the consultation paper CP22/19 on expectations for investment by firms in accordance with the Prudent Person Principle, or PPP, as set out in the Investments Part of the PRA Rulebook.

    May 27, 2020 WebPage Regulatory News
    News

    EBA on Extending Large Exposure Limits for French Systemic Banks

    EBA published an opinion following the notification by the French macro-prudential authority, the Haut Conseil de Stabilité Financière (HCSF), of its intention to extend a measure introduced in 2018 on the use of Article 458(9) of the Capital Requirements Regulation (CRR).

    May 27, 2020 WebPage Regulatory News
    News

    ECB Highlights NPL Resolution as Key Policy Issue in Post-COVID Europe

    As part of a Research Bulletin on the recent policy-relevant work, ECB published an article that examines the lessons learned from past crises for nonperforming loan resolution in the post COVID-19 period.

    May 27, 2020 WebPage Regulatory News
    News

    RBNZ Publishes Financial Stability Report for May 2020

    RBNZ published the financial stability report for May 2020. This review of the financial system in the country highlights that the economic disruption associated with COVID-19 will present challenges to the financial system.

    May 27, 2020 WebPage Regulatory News
    News

    ECB Updates Guidance on Reporting of Securities Holdings Statistics

    ECB updated the guidance notes for reporting related to the statistics on holdings of securities by reporting banking groups (SHSG).

    May 26, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5231