Bank of Ghana to assess people appointed to key positions of banks in the country

This directive is the BoG’s way to of ensuring sound corporate governance as a way of instilling confidence in the banking sector.

In the directive, Ghana Central Bank said its 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 BoG explained in its directive.

The directive added that those that will be scrutinized include shareholders, directors or persons holding key management positions within a bank, savings and loan company, finance house or a financial holding company.

This will allow the Bank of Ghana as well as the appointing financial institution to assess the appointee 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.

Anyone that does not qualify 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.