Bank employees who flout rules could face up to 10-year ban

The Bank of Ghana has announced that former employees or shareholders of commercial banks who flout the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), could be banned for up to 10-years from working or owning shares in the sector.

The Bank of Ghana

This was contained in the Fit and Proper directive issued by the Bank of Ghana (BoG) on Thursday (July 25, 2019).

The Fit and Proper directive is to ensure sound corporate governance as a way of instilling confidence in the banking sector.

The directive states that anyone that is not fit and proper shall not be permitted to own shares, hold key management or directorship position in a regulated financial institution.

However, those that are disqualified based on flouting the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), may not be permitted to engage in deposit-taking business for a period not exceeding ten (10) years from the date of the determination.


This directive will ensure that key personnel of banks are assessed by both the Bank of Ghana and the appointing financial institution based on some eight different criteria.

These criteria include financial integrity, reputation, demonstration of sufficient appreciation of the business of banking, academic/professional qualification, and experience. The rest are conflicts of interest, time commitment, and collective suitability.

The Bank of Ghana’s fit and proper persons directive emanates from provisions of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930) and the Bank of Ghana Act 2002 (Act 612), as amended by Act 738, which empowers the bank to have overall supervisory and regulatory authority in all matters relating to deposit-taking business.

“The aforementioned Act mandates the BOG to regulate, supervise and direct the banking and credit system and ensure the smooth operation of the financial sector including the promotion and maintenance of financial stability. To this end, the BOG is responsible for the licensing, supervision and regulation of the banking and credit system in Ghana,” the central bank explained in its directive.

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