Thursday, October 23, 2025
NewsCenta
  • Home
  • News
    • Politics
    • Local
    • Education
    • Agriculture
    • World
  • Entertainment
    • Celebrities
    • Music
  • Lifestyle
  • Business
  • Sports
  • Tech
  • Opinion
  • Newscenta Newspaper
No Result
View All Result
NewsCenta
  • Home
  • News
    • Politics
    • Local
    • Education
    • Agriculture
    • World
  • Entertainment
    • Celebrities
    • Music
  • Lifestyle
  • Business
  • Sports
  • Tech
  • Opinion
  • Newscenta Newspaper
No Result
View All Result
NewsCenta
No Result
View All Result

Foreign banks: BoG to rein in offshore control

Foreign banks: BoG to rein in offshore control

admin by admin
June 3, 2025
in Business
0
Bank of Ghana Board members

Bank of Ghana Board members

Share on FacebookShare on Twitter

The Bank of Ghana (BoG) is set to issue a bold new directive aimed at reinforcing local governance, board independence, and regulatory accountability in foreign-owned banks operating in the country.

The move seeks to curtail the increasing trend of outsourcing core credit and risk decisions to foreign parent entities, which the central bank warns undermines the integrity of Ghana’s financial system.

You might also like

IMF Ghana Oquaye

IMF Programmes have done Ghana no good — Prof. Mike Oquaye

October 22, 2025
Ghana Eurobond debt T-bills quarter

T-Bills: Govt to borrow GH¢75.7bn in quarter 4 of 2025

October 21, 2025

Local boards must exercise genuine oversight

Addressing the issue, the BoG made it clear that Ghana-based boards cannot serve as mere “rubber stamps” for decisions made offshore. According to the upcoming directive, all material credit decisions and risk management actions taken in Ghana must be under the genuine authority of local boards and management teams.

Speaking during a meeting with Bank CEOs in Accra, he said, “Core decisions cannot be made in foreign boardrooms and simply ratified in Accra,”  BoG Governor Dr Johnson Asiama said

“Such practices not only create unacceptable regulatory blind spots but also weaken institutional capacity and accountability within the domestic financial sector.”

Delegation of key decisions

Under the new rules, any delegation of key decision-making functions to offshore entities must receive prior approval from the Bank of Ghana.

Boards that approve decisions made without proper local deliberation will be considered in breach of the Corporate Governance Directive, specifically Sections 9 and 13, and may face regulatory sanctions.

The directive also tightens expectations around risk management, the Internal Capital Adequacy Assessment Process (ICAAP), and capital planning, insisting that these must reflect local realities in accordance with Basel II Pillar 2 standards.

Where institutions are found to be bypassing local governance structures, directors may be subject to fitness and propriety reviews, particularly if they are seen to be abdicating their fiduciary responsibilities.

Outsourcing Under Scrutiny Ahead of July 2025 Deadline

This initiative is complemented by the BoG’s Outsourcing Directive, which comes into force on 1st July 2025.

Banks are being reminded to review all outsourcing arrangements, particularly those involving data handling, credit evaluation, and operational control, to ensure they comply with supervisory expectations for accountability, data protection, and operational resilience.

The central bank stressed that outsourcing must not become a backdoor for external entities to exercise control without oversight. Institutions that fail to align their structures risk breaching legal and cybersecurity obligations under the Data Protection Act (Act 843) and the BoG Cybersecurity Directive.

Directive is pro-accountability, not anti-foreign

BoG officials were quick to emphasise that the directive is not a stance against foreign investment.

“This is not anti-foreign. It is pro-accountability,” the bank asserted. “We welcome global capital and expertise—but not governance frameworks that sideline the role of Ghana-based directors and executives,” Dr Asiama said.

The regulator warned that current offshore-dominated decision-making not only compromises supervision but also deprives local professionals of the leadership experience necessary to build long-term institutional capacity.

The goal, they said, is a resilient, accountable, and Ghana-rooted financial system—regardless of ownership.

Stronger sector, but vulnerabilities remain

While the BoG acknowledged that the overall resilience of the banking sector is improving—supported by higher profitability and modest asset growth—it warned that systemic vulnerabilities persist.

Chief among them are high non-performing loans (NPLs), capital shortfalls in some institutions, and weak governance in credit decisions.

This context explains why recent measures—including mandatory loan write-offs, a 10% cap on NPL ratios by 2026, and tougher rules on credit reclassification—have been introduced as part of a broader five-part regulatory reform package.

Crypto regulation framework on the horizon

Looking ahead, BoG also revealed that it is working closely with the Securities and Exchange Commission and other partners to finalise a comprehensive regulatory framework for cryptocurrencies and digital assets.

This initiative is aimed at providing legal clarity, managing risks, and enabling responsible innovation.

Banks and financial institutions are being encouraged to prepare now by enhancing Anti-Money Laundering (AML), Know-Your-Customer (KYC), and cyber risk frameworks, particularly for clients involved in digital assets.

The BoG also recommended participation in its regulatory sandbox for piloting crypto-related products and services.

The BoG reiterated its ongoing supervisory focus areas for 2025: governance, AML, cybersecurity, climate risk, and oversight of digital innovation.

The regulator pledged to deepen early warning systems, strengthen risk culture, and intensify board-level engagement.

Post Views: 299
Tags: Bank of GhanaDr Johnson Asiamah
admin

admin

Related Stories

IMF Ghana Oquaye

IMF Programmes have done Ghana no good — Prof. Mike Oquaye

by Kojo Emmanuel
October 22, 2025
0

Former Speaker of Parliament, Professor Aaron Mike Oquaye, has expressed strong criticism of Ghana and its recurring engagements with the...

Ghana Eurobond debt T-bills quarter

T-Bills: Govt to borrow GH¢75.7bn in quarter 4 of 2025

by NewsCenta
October 21, 2025
0

Government plans to raise GH¢75.7 billion through the treasury market (T-bills) in the final quarter of 2025, according to the...

First National Bank

First National Bank marks 10 years in Ghana

by NewsCenta
October 21, 2025
0

First National Bank is celebrating the 10th anniversary of its operations in Ghana, marking a decade of driving innovation, enabling...

Treasury Bill auction undersubscription Investor treasury bills

Investor demand for treasury bills plummets

by NewsCenta
October 21, 2025
0

Investor appetite for government Treasury bills slumped sharply in the latest auction on the Ghana Fixed Income Market (GFIM), with...

Recommended

First Lady Konadu

Govt mourns former First Lady Nana Konadu Agyeman-Rawlings 

October 23, 2025
Central Accra Bawumia

63 out of 87 NPP MPs back Bawumia

October 23, 2025
Minority bill

Minority slams gov’t over anti-LGBTQ+ bill removal

October 23, 2025

Popular Story

  • Songs Daddy Lumba

    See the list of over 200 songs Daddy Lumba released

    745 shares
    Share 298 Tweet 186
  • The true story behind Ghana’s acceptance of deportees

    721 shares
    Share 288 Tweet 180
  • Gold-backed policies since 2021 driving economic gains — BoG

    715 shares
    Share 286 Tweet 179
  • 10 of top 11 causes of death killing more men in Ghana

    700 shares
    Share 280 Tweet 175
  • Bissue floors High Court and OSP at Supreme Court

    691 shares
    Share 276 Tweet 173
NewsCenta

Newscenta is a Ghana-based news organisation publishing in print (The Newscenta Newspaper) and on a digital media platform (newscenta.com) dedicated to delivering timely and impactful news across various sectors, including politics, business, economy, technology, and culture.

  • About Us
  • Contact Us
  • Health
  • Education
  • Mining
  • Energy
  • Telecoms
  • Agriculture
  • Opinion
  • Newscenta Newspaper
  • Trade

© 2025 All Rights Reserved NewsCenta.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Home
  • News
    • Politics
    • Local
    • World
  • Entertainment
    • Celebrities
    • Music
  • Lifestyle
  • Newspaper Headlines
  • Business
  • Agriculture
  • Education
  • Sports
  • Tech
  • Opinion
  • Newscenta Newspaper

© 2025 All Rights Reserved NewsCenta.

Connect with us