Financial Regulations in Ghana Parliament passes Bank and Specialized Deposit bill

It applies to banks, specialized deposit-taking institutions, financial holding companies and affiliates of banks, specialized deposit-taking institutions, and financial holding companies.

  • Published: , Refreshed:
Parliament play

Parliament

24/7 Live - Subscribe to the Pulse Newsletter!

Parliament on Tuesday passed the Bank and Specialized Deposit-Taking Bill to improve financial regulations in the country.

It applies to banks, specialized deposit-taking institutions, financial holding companies and affiliates of banks.

The new bill follows the passage of the Deposit Protection Bill to protect the savings of depositors and also promote confidence in the financial system.

READ MORE: Deposit Protection Bill passed by parliament

The bill highlighted the Bank of Ghana the sole regulator charged with financial regulations in the banking sector.

In addition, the bill also consolidated all laws covering the regulations of institutions involved in Deposit talking business.

A Member of the Finance Committee of Parliament, Benjamin Kpodo outlined the difference between the Depositors Protection Bill and the Bank and Specialized Deposit-Taking Bill.

He said:“one creates the insurance scheme-the other one seeks to regulate how they operate-licensing, reporting, their relationship with the Bank of Ghana.

READ MORE: Depositors' bill will restore confidence in the banking sector

Kpodo also urged banks to cooperate with the new regulations.

Highlight of the Bill

  • Deals with restrictions on lending and investment- which prohibits a bank or specialized deposit-taking institution from granting advances,loans or credit facilities including guarantees against the security of the shares of the bank or specialized deposit-taking institution, the shares of its financial holding company, the shares of any of its subsidiaries or the shares of any of the subsidiaries of its financial holding company.

  • A bank, specialized deposit-taking institution or financial holding company whose capital adequacy ratio is less than the ratio prescribed by the BoG is not to take an inter-institutional placement or receive a loan or deposit from the any bank, specialized deposit-taking institution, or financial holding company in the country except with the express written approval of the Bank of Ghana.

Do you ever witness news or have a story that should be featured on Pulse Ghana?
Submit your stories, pictures and videos to us now via WhatsApp: +233507713497, Social Media @pulseghana: #PulseEyewitness & DM or Email: eyewitness@pulse.com.gh.

Recommended Articles

Recommended Videos




Top Articles

1 Poverty Gap Ghana’s policies make the rich wealthier – UNbullet
2 Job Creation Nation Builders Corps to be launched end of April - Bawumiabullet
3 Menzgold Ghana Don't deposit money with Menzgold – BoG cautions...bullet
4 Salaries In 2018 Here are the dates public workers will be paid in...bullet
5 Menzgold Ghana Investment company closes down its Gold Vault Marketbullet
6 May I take Your Order It's ‘Chop Time’ at Achimota Mallbullet
7 In Upper East 2 men killed in daylight bank robberybullet
8 SSNIT Scandal 10 SSNIT staff with fake certificates...bullet
9 Newmont Deaths Investigative report to be out by end of...bullet
10 Taxes In Ghana 3% VAT flat rate takes off in July 1bullet

Top Videos

1 Money Alert Meet Africa's richest womanbullet
2 Forbes 2018 Africa's billionaires rich listbullet
3 Bozoma Saint John 10 quotes from Uber top official, Bozoma, that...bullet
4 New Discovery Ghana discovers new mineral, lithium in commercial...bullet
5 Plane Crash Starbow suspends operations following plane crashbullet
6 Dr Joseph Siaw Agyepong Nobody can collapse my company – JOSPONGbullet
7 Support Finance minister buys Kantanka carbullet
8 Entrepreneurship How to be resourceful as an entrepreneurbullet
9 Tech 6 reasons you should buy an iPhone SE instead of...bullet

Business