Ghana Banking Act 2004

This paper details Republic of Ghana Banking Act, which aims to:

• Amend and consolidate the laws relating to banking;
• Regulate institutions that carry on banking business;
• Provide for other related matters.

The paper discusses:

• The functions of the Bank of Ghana;
• Licensing of banks, including:
  • The restriction of eligibility to Ghanaian corporate bodies;
  • The process of obtaining a license;
  • Activities permissible for banks;
  • Reasons for and procedure of the revocation of license.
• Capital adequacy, and:
  • The need for extra reserves;
  • Penalties for non-compliance with capital requirements.
• Liquidity, including:
  • Maintenance of liquid assets;
  • Penalties for non-compliance with liquidity requirements.
• Matters of ownership and control, including:
  • Conditions for the transfer of shares;
  • Penalties for non-compliance;
  • Disqualification of directors, officers or employees;
  • Disclosure of interest.
• Restrictions on lending and investments, including:
  • The prohibition of advances against security of own shares;
  • Limits and restrictions on exposure;
  • Requirements for lending;
  • Restrictions on establishment of and lending to subsidiary companies.
• Powers of supervision an control, like:
  • Regulation;
  • Information and on-site examination;
  • Taking custody of records;
  • Revocation of license;
  • Winding up of the bank;
• Accounts and audits, including:
  • Guidelines on accounting standards,
  • Disclosures in the balance sheet;
• Other miscellaneous items, like:
  • Secrecy of information;
  • Offences and penalties, etc.