Bank of Ghana sets minimum requirement for key positions in commercial banks: clarifies who is fit and proper in a new directive

GBT Business Desk/ghanabusinestimes@gmail.com

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The Bank of Ghana in the ongoing banking and financial reforms sets out guidelines as to who becomes what portfolio manager, when and how. In the new directive, the central bank  clarifies who is “fit and proper” to hold hold/occupy what position, when and how pursuant to Section 92(1) of the Banks & Specialised Deposit Taking Institutions Act, 2016 (Act 930) and shall apply to Banks, Savings and Loans Companies, Finance Houses and Financial Holding Companies licensed or registered under Act 930

Under this directive, a “key management personnel” means the chief executive officer or managing director, deputy chief executive officer, chief operating officer, chief finance officer, Board secretary, treasurer, chief internal auditor, the chief risk officer, the head of compliance, the anti-money laundering reporting officer, the head of internal control functions, the chief legal officer, the manager of a significant business unit of the Regulated Financial Institution.

According to the bank, to its achieve its regulatory and supervisory objectives, RFIs are expected to adhere to BOG’s licensing and prudential requirements as well as ongoing supervision programs, including periodic on-site examinations and required prudential reporting. It emphasized the bank recognises the influential role that Shareholders, Directors and Key Management Personnel of RFIs play in shaping the activities and operations of their institutions toward achieving their set objectives. It is therefore the responsibility of BOG to ensure that persons acquiring significant equity interest in RFIs, or appointed as Directors or Key Management Personnel do not pose risks to depositors and creditors of their institutions, thus maintaining confidence in the banking sector.

Source: Bank of Ghana

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