Ghana to revise banking laws following IMF recommendations
The laws will be reviewed in the first quarter of next year.Three critical legislations enacted by the Parliament of Ghana to guide the financial services sector and the management of public funds will be amended following recommendations from the IMF.
The Public Financial Management law, the Banks and Specialised Deposit-Taking Institutions law and the Deposit Protection law, which have only been enacted seven months ago, will be reviewed in the first quarter of next year, Ghana Star reports.
The IMF said the bills "strengthen the central bank's ability to safeguard financial stability, through enhanced powers to resolve banks that are deemed to be unviable and a new deposit insurance scheme that will provide protection to small depositors in the event of resolution."
However, it has identified some weaknesses in the legislations that could "warrant further amendments to fully enable the authorities to minimise financial stability risks in case of a bank failure". It also identified "significant shortcoming in terms of enhancing accountability".
It has been putting pressure on the government and the Bank of Ghana to ensure that the holes in the laws were fixed in a bid to build confidence in the country's financial system.