TIG Post

Tag: BoG

  • BoG gives GHC10m to COVID-19 Trust Fund

    After President Nana Addo Dankwa Akufo-Addo, his vice and appointees donated their 3-month salary to the COVID-19 Trust Fund, many people including some members of the opposition political parties have made donations.

    Faith-based organisations and business moguls have also contributed their quota towards the growth of the national trust.

    The latest to make donations towards the course is the central bank of Ghana.

    The Bank of Ghana (BoG) on Friday, April 17, 2020 contributed an amount of GHC10 million to the COVID-19 National Trust Fund.

    “The amount is in support of the national efforts towards the fight against the COVID-19 pandemic,” the Bank of Ghana said in a press statement.

    As of April 5, a total of over GHC8 million had been collected from the general public. President Akufo-Addo made known in his 5th address to the nation.

    The Trust Fund, headed by former Chief Justice, Sophia Akuffo is expected to receive public contributions to help improve the lives of the vulnerable who will be worst-hit by the pandemic.

    The other members of the Board of trustees of the Fund are Archbishop Justice Ofei Akrofi, Jude Kofi Bucknor, Gifty Afenyi-Dadzie, Elsie Addo-Awadzie, Dr. Ernest Ofori-Sarpong, and Dr Tanko Collins Asare, who will act as Secretary to the Board.

    Source: www.ghanaweb.com

  • BoG extends deadline for meeting minimum capital requirements

    The Bank of Ghana (BoG) has extended the deadline for meeting the minimum capital requirements for the banking and specialised deposit-taking institutions, as well as payment service providers and electronic money issuers.

    The BoG in a press statement issued in Accra yesterday, signed by its Secretary, Ms Sandra Thompson and copied to the Ghanaian Times, said the deadline for meeting the minimum capital requirements by all existing payment service providers and electronic money issuers as well as banks and specialised deposit-taking institutions “is extended from June 30, 2020 to December 31, 2020”.

    “The deadline for meeting the Payment and Card Industry Data Security Standard (PCI-DSS) and International Standard Organisations 27001 certification requirements is extended from June 2020 to December 2020. This applies to all existing electronic money issuers and payment service providers that fall under the licence category required to meet the above certification,” the statement said.

    It said the deadline for meeting the minimum infrastructure and governance requirements had been extended from June 2020 to December 2020.

    “On account of security concerns, all existing financial technology firms that intend to integrate with the Ghana Interbank Payment and Settlement System (GhIPSS) are required to meet GhIPSS minimum security and control requirements by December 31, 2020,” the statement said.

    To operationalise the Payment Systems and Services Act 2019 (Act 987), the BoG issued a notice on the minimum capital requirements, permissible activities, fees, governance and systems requirements for payment service providers and electronic money issuers.

    Source: ghanaiantimes.com.gh

  • GUTA wants BoG to force FIs to waive loan repayments for six months

    The Ghana Union Traders Association (GUTA) wants the Bank of Ghana to compel all financial institutions to waive loan repayments for businesses as directed by the government.

    The Finance Minister announced in Parliament on Monday, March 30, 2020, some fiscal measures to mitigate the impact of the coronavirus pandemic.

    They include granting a six-month moratorium on principal repayments for selected businesses.

    To this end, GUTA said: “Without necessarily spelling out the details of the measures, we like to single out the granting of principal repayments for selected businesses. We believe BoG should have that stronger oversight to ensure that all financial institutions will implement this directive for all businesses to bring the needed relief to all distressed businesses at this time.

    “GUTA, however, notes the timely presentation of this statement to parliament.”

    Explaining further, the statement said: “It is very important that at this time of our lives as a people, every effort should be made to ensure that the negative impact on especially, our businesses, can be reduced through the human approach by our revenue authorities, Bank of Ghana, landlords, financial institutions and above all the government.”

    GUTA lauded President Nana Addo Dankwa Akufo-Addo and the government for their fight against COVID-19 to ensure that the impact on businesses is lessened.

    But while doing so, it advised the government to have the members of GUTA and the trading private sector in mind as far as any stimulus package is concerned, since majority of them are in the small and medium enterprises sector.

    “GUTA will continue to advise all her members and the trading private sector to adhere to all the directives of the government and to continue to follow the precautionary measures put out by the health ministry bearing in mind that yes, the economy can be fixed but not our lives, should we lose it”, the group added.

    Source: classfmonline.com

  • BoG intensifies education on electronic payments

    The Bank of Ghana (BoG) has encouraged stakeholders in the financial sector to intensify public education and sensitisation on the new electronic payment system including the use of Universal QR Code Payment Service and Proxy Pay for efficient and convenient payment.

    Speaking at the launch of the Universal QR Code and the Proxy Pay in Accra on Wednesday, Dr Ernest Addison, the Governor of the Central Bank, said the QR Code and the Proxy Pay had the potential to become the game changer by supporting merchants and non-bank entities to accept payments from customers of different financial institutions.

    The new payment solution, he said, would also speed up digitisation of payments to distributors, wholesalers, and suppliers as well as encourage users and merchants to accept and use electronic payment platforms.

    “This will further provide a boost to the financial inclusiveness through the digitisation agenda,”Dr Addison noted.

    The Governor of the Central Bank said for the public to have confidence in the electronic payments, it was imperative to create the needed awareness of such electronic payment platforms, in order to enhance public confidence and acceptability.

    Dr Addison urged financial sector players to improve the cyber security features of those payment platforms by using latest technology such as machine learning and artificial intelligence.

    Beyond that, he said, it was prudent to offer dedicated platforms for resolving customer complaints timeously, and also provide assurance to boost customers’ confidence in the electronic payment products.

    The Governor urged banks to continue working with the existing financial service providers and integrate new ones to develop new products that suited into the changing trend of the business climate.

    “Let me state that the high penetration of electronic wallets and mobile phones has positioned Ghana to leverage on the Universal QR Code and Proxy Pay to advance our quest for a cash-lite economy, as we improve financial inclusion agenda,” the Governor of BoG said.

    Dr Addison acknowledged the contributions of the Ghana Inter-bank Payment and Settlement System and other stakeholders for working diligently towards the launch of the Universal QR Code Payment Service and Proxy Pay in the country.

    Source: GNA

  • Bank of Ghana asks banks to seek approval before payment of dividends

    The Bank of Ghana (BoG) has asked banks and Specialised Deposit-Taking Institutions (SDIs) to seek its approval in writing before the declaration and payment of dividends.

    The move is to prevent banks from using funds from the reduction in the Bank’s reserve requirements and the conservation buffer.

    The BoG, as part of efforts to combat the economic impact of the coronavirus, cut its benchmark interest rate by 150 points, announced a reduction in the Banks’ reserve requirements to eight percent from 10 percent and also lowered the conservation buffer to 1.5 percent from three percent, which effectively cut the capital-adequacy ratio to 11.5 percent from 13 percent.

    “Banks and specialized deposit-taking institutions are to refrain from declaring and paying dividends or making other distributions to shareholders for the 2019 financial year unless the Bank of Ghana is satisfied that the institution is not relying on the additional liquidity released by the policy measures,” the BoG said in a statement.

    It also asked the banks to comply and not to use liquidity gained from the eased capital rules to buy government securities and warned that failure could lead to sanctions.

    “The Bank of Ghana shall monitor banks and SDIs’ financial dealings on a weekly basis, to ensure full compliance with the above directives. Failure to comply with this Notice shall attract sanctions in accordance with the relevant provisions of the Bank and Specialised Deposit-Taking Institutions Act,” it added.

    Source: GNA

  • Bank of Ghana cuts policy rate by 150 points over Coronavirus [COVID-19]

    The Bank of Ghana has reduced its benchmark policy rate by 150 basis points as its first response to the strain that the Coronavirus disease (COVID-19) is imposing on the economy.

    The policy rate determines the rate at which commercial banks determine interest rates on loans.

    With this cut, it is expected that interest rates on commercial loans will also drop.

    The bank reduced the rate, which is the benchmark for inter bank lending, from 16 per cent to 14 per cent Wednesday [March 18, 2020].

    The Governor of BoG and Chairman of the bank’s Monetary Policy Committee, Dr Ernest Addison, announced this in a statement issued Wednesday [March 18, 2020].

    The statement followed the conclusion of the 93rd MPC meeting which reviewed activities in the economy and the impact of global developments on the local front.

    Unlike before when the committee’s meetings were followed by press conferences, the bank issued a statement in compliance with the directive to avoid social gatherings in the wake of the COVID-19 scourge.

    The reduction in the rate is the first since November 2018 and is expected to combine with other factors to make cost of credit cheaper.

    The BoG policy weight carries about 40 per cent weight in the computation of the Ghana Reference Rate, the base rate for banks lending.

    Coming at a time when the central bank feared that the COVID-19 could collapse 2020 growth to five per cent or 2.5 per cent in the worst case scenario, the reduction in the rate could make funds cheaper for businesses to access and use to revitalize their operations.

    It could also make funds available to consumers, thereby raising consumer purchases for growth to rebound.

     

    Source: graphic.com.gh

  • BoG extends minimum capital requirement for PSP to December

    The Bank of Ghana (BoG) has extended the deadline of meeting the minimum capital requirement for Payment System Providers (PSP) from June to December, this year, after consultation with relevant stakeholders.

    In September 2019, the Central Bank increased the minimum capital requirement for Mobile Money companies by 300 per cent from five million Ghana cedis to GH¢20 million and given nine months to meet the deadline.

    However, Dr Settor Kwabla Amediku, the Director and Head of Payment Systems Department of the Central Bank, speaking at the opening of the maiden Mobile Technology for Development (MT4D) Conference in Accra on Tuesday, announced the extension, which attracted thunderous applause from financial stakeholders at the meeting.

    He said all lenders are to use 50 per cent of their existing assets as part of the paid-up capital and should lodge the rest of the 50 per cent at the Bank of Ghana.

    In addition, the governance framework and infrastructure requirement for Payment System Providers has also been extended to December 2020.

    The Central Bank in a statement issued on 12 September 2019, said the emergence of new payment streams, institutions such as financial technology companies and the general acceptance of electronic money have necessitated the enactment of the Payment Systems and Services Act (Act 987) to provide the legal and regulatory framework for the orderly development of the payment system in the country.

    The BoG, therefore, grouped the PSPs as follows: PSP Electronic Money Issuer-GH¢C20 million, PSP Scheme (Payments cards like Visa and Master Cards)-GH¢8million, PSP Enhance Licence (Payment Platforms like ExpressPay etc)-GH¢2million, PSP Medium Licence (Sub agents for the payment platforms)-GH¢800,000.00 and Standard Licence (Startups fintechs)-No capital required.

    Dr Amediku said the importance of financial inclusion for growth and development of any country cannot be overemphasized because it improved resource allocation, retained price stability and ensured flexibility, competitiveness and accessibility as well as enhancing the poverty alleviation efforts.

    Source: GNA

  • Counting machines help maintain integrity of money business – BoG

    Mr Kennedy Adu, Director of Banking Department at the Bank of Ghana (BoG) on Thursday said improved money counting machines will help maintain integrity in the business of counting money.

    Mr. Adu said there is the need to ensure the integrity of cash transactions in the country and it could only be achieved through usage of improved equipment to facilitate banking activities.

    The BoG Director stated this at the Product Exhibition and Launch of new money counting machines by Krif Ghana, in Accra.

    He said it is important that when you are being paid money, it is the exact amount you are expecting and it is very important that Banks are able to detect counterfeits, shortages, and mixed denominations in a bundle.

    Mr Adu reiterated the need for stakeholders to join forces to chase out those who are involved in counterfeiting; “It is very important that we come out with equipment that will help us maintain the integrity in money business”.

    He noted that highly improved new counting machines would help banks to sort out their currencies smoothly and prevent sanctions from BoG.

    Rev. Kennedy Okusun, the Executive Chairman of Krif Ghana, said the new machines were introduced as a result of difficulties in counting the newly introduced currencies by some customers.

    As a result, they teamed up with manufacturers of the money counting machines, Olympia of Germany and Magner of USA, to introduce new money handling machines of exceptional qualities onto the Ghanaian market.

    He said the Olympia NC-540, Olympia NC-540, Olympia NC-620 had been specifically designed for the Ghanaian currency and would be able to count both the existing and the new cedi notes perfectly without any hitches or flaws.

    “These machines do not make errors. Efficiency and accuracy are their hallmark and these are what we put at the disposal of everyone on the Ghanaian market,” he said

    Source: GNA

  • We havent received our monies despite Receivers promise Customers of S&L

    The Coalition of Affected Savings and Loans Customers (CASLOC) says none of the over three million members of the group has retrieved their locked up cash.

    The Receiver of the collapsed savings and Loans and microfinance indicated on February 25, 2020 that about 1,300 depositors will receive messages to reclaim their monies.

    However in an interview with Citi News, Spokesperson for the CASLOC, Iddrisu Mubarak says none of the members had received a message.

    “CASLOC alone holds more than three million customers. And out of that, we have divided them under regions and every region has its head. So every morning, the regional head goes down, to check on platforms, telegrams and places to find out whether any of them have been paid or has received a text message or something.

    “None of them has received a text message, call or e-mail. None of our members has received anything. We were all telling our customers to exercise patience. We told them it is a process and sometimes might take a longer period so they should all exercise patience so we can give the government ample time,” he aid.

    Customers to be paid on Feb 24

    The Receiver, Eric Nana Nipa had earlier confirmed to Citi News that the customers of the collapsed microfinance, savings and loans and finance houses will from Monday, February 24, begin to access their full locked-up funds.

    This came after President Akufo-Addo, while delivering the 2020 State of the Nation Address in Parliament last week said the affected customers will begin receiving their locked up cash from the said date.

     

     

    Customers to be paid by March

    However, in a new development, the Receiver has assured that all affected depositors will receive their locked up investments by end of March this year after payment processes started on Monday.

    In an interview with Citi Business News, spokesperson for the receiver, Philomena Kuzoe, said since February 24, about 800 people have been notified to retrieve their locked up cash amounting to GH¢200 million from Consolidated Bank Ghana (CBG).

    “So yesterday [Monday], we paid the social institutions made up of the churches, hospitals, schools, welfare associations who have their claims with these defunct microfinance and savings and loans institutions. We are expecting to finish by the end of March,” she said.

     

    Source: citinewsroom 

  • BoG begins market surveillance to sanction entities who charge in dollars

    The Bank of Ghana, BoG says they will sanction institutions and individuals who still charge in foreign currencies by flouting the Foreign Exchange Act. The reaction of the BoG comes after viral images of a shop attendant at Palace HyperMarket on the Spintex road accepting dollars as payment from a customer.

    The team led by the Head of Communications at the BoG, Esi Hammond in market surveillance today visited the Palace HyperMarket and engaged management of the shop.

    According to Esi Hammond, most of the shops are willing to accept dollars for their transactions.

    For this most of them were educated on the fact that it contravenes the law.

    “…met some of our stakeholders to alert them about the need to observe the rules and regulations of the land and particularly with respect to the Foreign Exchange Act which prohibits pricing and dealing in goods in a foreign currency, it has come to our notice that few shops even schools and other institutions charge in dollars, so today we paid a visit to the palace supermarket and we realized that some of them are willing to take dollars in exchange for goods you decided to buy, we engaged them and told them that these contravene the Act.

    She disclosed that the exercise will be carried out most often to make sure institutions comply with the Foreign Exchange Act.

    “We will be going round and it is going to be a continues thing we do every now and then in various institutions.”

    Source: primenewsghana.com

  • Pay us or lose our votes Customers of Gold Coast to govt

    The Coalition of aggrieved customers of Gold Coast Fund Management (GCFM) has threatened to vote against the New Patriotic Party if their locked up investments are not paid.

    The coalition has given the government a three-week ultimatum to either engage them or face another demonstration.

    The Public Relations Officer for the aggrieved customers Charles Nyame addressing the press Monday morning alleged that the Finance Minister Ken Ofori Atta and the Chief Executive of the Securities and Exchange Commission (SEC) Rev Ogbamey Tetteh have withdrawn their investments from the Gold Coast Fund Management.

    According to him, the failure for the government to pay them their investments amounts to stealing from innocent, hardworking Ghanaians.

    “No one prefers free SHS to his personal financial freedom…there is life after free SHS, our wards must continue to the tertiary after free SHS, therefore, we need our money. If Ken Ofori Atta and Rev Ogbamey Tetteh have been able to withdraw all their funds with Gold Coast Fund Management, then what we want to tell them is that we also deserve ours. What is good for the goose is also good for the gander.

    “You cannot steal from innocent citizens…ladies and gentlemen, we consider the action of Ken Ofori Atta and Rev Ogbamey Tetteh as stealing from the poor Ghanaians.”

    Background

    The SEC on November 8, 2019, revoked the operating licences of 53 investment companies including Blackshield Capital Management (formerly Gold Coast Fund Management).

    The company is owned by politician and businessman, Dr Papa Kwesi Nduom.

    The revocation of the licences, according to the regulator, was to protect the integrity of the securities market and investors.

    The Minority in Parliament described the move as politically motivated.

     

    Source: starrfm.com.gh

  • Jomoro Rural Bank exceeds BoG minimum capital requirement

    The Jomoro Rural Bank has exceeded the GHc1,000,000.00 minimum capital requirement as the stated capital of the Bank stood at GHc1,038,268.00 as at the end of December 2018.

    The Bank was able to reach the threshold since the Board members made it compulsory for all Directors, Management and Staff to purchase some fixed amount of shares every month.

    As part of a strategy, the Bank has also proposed that the minimum number of shares for aspiring Directors be pegged at GHc10, 000 with those of their nominators and seconders being GHc4, 000.

    Chairman of the Board of Directors, Professor Cosmos Cobbold announced this when he delivering an annual report and financial statements of the year ended 31st December 2018 during the 22nd Annual General Meeting (AGM) of shareholders of the Bank at Tikobo No.1 in the Western Region.

    Build profile of borrowers BoG direct banks

    He said profit before tax reduced by 42.87% from GHc 601,006.00 in 2017 to GHc343, 323.00 in 2018 largely on account of an increase in requirementBoG provisions from GHc120, 000.00 in 2017 to GHc490, 557.00 in 2018 which marked the end of the legacy bad debt provisions that have been staggered over the years.

    Prof. Cobbold said the Bank recorded moderate growth in its key performance indicators with the exception of profit before and after-tax.

    Total loans disbursed to small and medium scale enterprises, farmers and salaried workers amounted to GHc10, 703,169.00 as compared to GHc9, 044,714.00 in 2017.with 10.92% increase in total income from GHc4, 627.965.00 in 2017 to GHc5, 133,598.42 in 2018.

    Total expenditure also increased from GHc4, 026,959.00 in 2017 to GHc4, 710,275.13 in 2018 showing an increase of 14.5% which resulted in profit before tax decreasing by 42.87% from GHc601, 006.00 in 2017 to GHc343, 323.00 in 2018.

    The Board recommended that dividends be converted to bonus shares for members and urged shareholders to take keen interests in their investments by going to any of their branches to update their records and take statements.

    Prof. Cobbold encouraged existing and potential customers to continue to do business with the Bank and dispel the rumours that Bank of Ghana was going to close down rural Banks adding that the Bank of Ghana and ARB Apex Bank are poised to reposition the rural and community banking sector to enable them better support rural economic development.

    Banks must verify background of employees to curb rising fraud — BoG

    He was highly elated to announce that the Jomoro Rural Bank Ltd. was among the Banks that were given a clean bill of health to sign on to the Ghana Deposit Protection Scheme to protect depositor’s interest in the event of Bank failure.

    On corporate social responsibility, the Bank afforded students from various tertiary institutions in the country, the opportunity to undertake their internship and spent a total amount of GHc6, 197.00 in the areas of education, health, sports and culture.

    Prof.Cobbold said the Board of Directors remained resolute in its commitment to staff development adding that a number of staff members were given the opportunity to pursue approved programmes in various tertiary institutions in the country and also participated fully in internal training programmes as well as training programmes organized by the Association of Rural Banks, the ARB Apex Banka and the Bank of Ghana during the year under review.
    He observed that the year 2019 witnessed an unprecedented revocation of the licences of 347 microfinance companies in the country of which 155 had already ceased operations, 39 microcredit companies/money lenders of which 10 had already ceased operations, 15 savings and loans companies, 8 finance houses and 2 non-bank financial institutions that had already ceased operations with various reasons adduced by the financial regulator.
    Prof.Cobbold said the developments in the micro-finance and savings and loans sub-sector impacted the operations of RCBs in 2019 and has brought to the fore, the need for prudent management of risk and liquidity.

    He said the Board and management of the Jomoro Rural Bank will work collaboratively with the Bank of Ghana, the ARB Apex Bank and auditors of the Bank to ensure that the Bank remains robust and resilient at all times.

    The General Manager of the Bank, Mr.Adormah Mawunyo said the Bank said the Bank was poised to make more profit in the ensuing years to be counted as one of the best financial institutions in the country.

    Source: ghananewsagency.org

  • Republic Bank boss reacts to BoG’s publish salaries of bank executives directive’

    Managing Director of Republic Bank Ghana, Farid Antar, says calls by the Central Bank for commercial banks to publish compensations of executives is a right call.

    This directive by the Bank of Ghana, he adds, is replicated in international banking business.

    In an exclusive interview with Ghanaweb, Farid stated that there is a need for shareholders to ensure that executive compensation is aligned with bank performance to deter bank executives from lavishly spending the resources in their custody.

    Read: How BoG governor landed top IMF job

    “It is actually an international corporate standard. In your publication you are supposed to publish remuneration of the executives. Some groups publish as a group or individuals. I think it is important to publish and we are in support of it.”

    The Bank of Ghana has indicated its resolve to scrutinize compensation package policies of universal banks to ensure that remuneration for key management personnel including Chief Executive Officers are linked to the performance of the banks and quality of its assets.

    The Governor of the Central Bank, Dr Ernest Addison, addressing journalists at the 91st monetary policy press briefing, added that “to ensure transparency, banks will be required to publish Value Added Statements disclosing details of the compensation packages of key management personnel and Boards of Directors separately from total employee compensation”.

    Read: BoG has built strong reserves to stabilise cedi, prices Deputy Governor

    Executive compensation in the banking sector has come under intense scrutiny around the world.

    In Ghana, several critics argue that this was a contributory factor to the challenges which led to the meltdown in the banking sector.

    The move by the Bank of Ghana to get universal banks to link compensation of bank executives with the overall performance of the bank is expected to ensure these executives earn their salaries as it is with all other employees of the bank.

    Source: www.ghanaweb.com

  • How Ghanaians are reacting to BoGs new GHC2 coin, 100, 200 Cedi notes

    Following the release of GHC 2 coin, 100 and 200 Cedi notes into the circulation by the Bank of Ghana, a number of Ghanaians have been reacting to the news.

    The reactions show that Ghanaians have received the news with mixed feelings and as expected, some have received the news with humour while others have done so with anger.

    Read: Bank of Ghana releases GH₵ 2 coin, 100, 200 Cedi notes

    A careful sieve through the reactions, however, suggest that people are generally not happy with the introduction.

    Some of the people reacting to the introduction of the notes are apprehensive, saying should the unfortunate happen for one to lose their wallet containing just three of the 200 cedi notes, the pain will be way too much to bear.

    The Governor of Bank of Ghana, Ernest Addison, announcing the introduction of the new notes said they were meant align well with the needs of the people.

    Read: BoG considering issuing E-Cedi in future

    Meanwhile, the Governor of Bank of Ghana, Ernest Addison, has explained the rational behind the introduction of the new notes, saying they were meant to align well with the needs of the people.

    “A lot of thinking went into the decision to introduce the higher denomination banknotes. The structure of the banknote should align well with the needs of the people who use it for their daily transactions.

    “We need banknotes and coins that are convenient for most people to use, high quality, secure and cost-effective. Accordingly, in March 2017, the Bank of Ghana begun a process of conducting a thorough review of the structure of the currency including on the note/coin boundary and acceptability and use of the individual currency series,” Dr Addison said.

     

    Source: adomonline.com

  • BoG directs fintechs and MoMo operators to acquire license by June 2020

    The Bank of Ghana has said companies engaged in online or digital transactions including Mobile Money Operators and fintechs, have up to June 2020 to acquire their licenses to enable them operate in the electronic payment space.

    The acquisition of the license by these companies is one of the requirements in the Payment Systems and Services, 2019 (987Act).

    Man arrested for attempting to load MOMO account with fake currency

    The Act was passed in March this year, to ensure effective monitoring and regulation of digital transactions following an increase in such services.

    Statistics from the Bank of Ghana shows that while mobile money accounts have increased to 32 million, Bank accounts currently stand at 12 million with a lot of them being inactive.

    “Consumer protection issues have gained prominence in the digital financial service on account of complexity of digital ecosystem. For this reason, regulatory guidance is required for effective consumer protection,” Head of Payment Systems Department at the Bank of Ghana, Dr. Settor Amediku, said at the 23rd National Banking Conference organized by the Chartered Institute of Bankers.

    You need GHC20m to run MoMo firm BoG

    The Bank of Ghana has therefore stepped up the monitoring of digital transactions with the introduction of a database called the Visor.

    The Vizor will enable the BoG monitor real time all electronic transactions of banks.

    Dr. Amediku says they are already in talks with the banks to facilitate the introduction of the database.

    “Vizor will provide end-to-end solution which permits the bank to collect, process, store as well as report on macro and micro prudential data, statistical data or any other data required as part of the supervisory process.”

    Source: citibusinessnews.com

  • BoG boss loses dad

    Governor of the Bank of Ghana, Dr. Ernest Addison’s father, Mr. Attah Joseph Addison  has died, according to reports.  He died aged 97.

    The one-time deputy director and Engineer-in-chief of the Posts and Telecommunications Department is reported to have passed on Saturday, November 16, 2019.

    Inflation will tumble Ernest Addison

    Mr. Joseph Addison was also the father of Mrs. Janet Oklah, Accra, Mrs. Marian Akiwumi, USA, Lawyer Philip Addison, Dr. Ernest Addison, among others.

    Funeral arrangement will be announced later.

    Joseph Atta Addison was 97

    Source: 3news.com

  • BoG receives $71.5m in bids for third forward forex auction

    The Bank of Ghana (BoG) received $71.5 billion in bids from dealers, businesses and banks that participated in its third forex forward sale.

    This means the Central Bank got more in bids than the $25 million that it was willing to sell in its forward forex sale.

    Based on the auction results, 49 bids came from banks and dealers that were looking for $47 million from the Bank of Ghana in seven days.

    However, the Bank of Ghana is prepared to sell $10.5 million within a range of GH¢5. 37 and GH¢5.38 by accepting 10 bids. 30 Bids came from dealers who were looking for $18.5 million in 15 days, but the regulator was prepared to sell $9 million at a price of not more than GH¢5.43.

    Dealers and banks that wanted dollars in 30 days, submitted bids worth GH¢5 million at a price of GH¢5.42.

    Read:BoG building GHC1bn buffer against election 2020 Ernest Addison

    For this particular auction, the Bank of Ghana accepted all the bids in terms of price and the amount that they are looking for. The central bank also accepted all the bids coming from dealers that wanted $500, 000 in 45 days.

    From the results, it was clear that there is more market players wanted more dollars, however, Bank of Ghana was able to supply a limited amount.

    The next auction would be done on 26 November 2019 and December 10 2016. The Bank of Ghana is looking at selling $125 million at the end of the auction results by the end of this year.

    Structure of the auction

    The Bank of Ghana, the Foreign Exchange Forward rate Auction is limited to 7-day, 15-day, 30-day, 45-day, 60-day and 75-day tenors starting on October 01, 2019 to December 2019.

    The Central Bank also said, in addition to the auction guidelines, all Authorized Foreign Exchange Dealer Banks shall also comply with the provisions of the Code of Conduct for the Interbank Foreign Exchange market in Ghana.

    Read:BoG to shore up reserves with $1bn Addison

    Bank of Ghana on the forward auction

    Speaking to JoyBusiness, the Head of Financial Markets at the Bank of Ghana, Stephen Opata noted that the initiative would help businesses plan for their forex needs.

    He said, “It creates more certainty for clients for future FX needs and alleviates unnecessary pressure on the spot FX market”.

    Mr Opata indicated that it is another window to provide foreign exchange to bank clients based on verified commitments.

    He added that this move is an ongoing reform to streamline operations of the foreign exchange market.

    According to the Bank of Ghana, it would issue a one week notice, before the sale of these forexes, for businesses and commercial banks.

    Read:Address issue of high interest rates Akufo-Addo to BoG

    This would also allow businesses and banks to plan properly for their forex needs; a development that would help reduce pressure on the spot market.

    Mr Opata added that after the first forward auction on October 1, the regulator plans to come out with a calendar for further sales.

    Source: Myjoyonline.com

  • BoG deepens public understanding on banks closure

    The method deployed by the Bank of Ghana (BoG) in the recent clean-up exercise was largely dependent on the root cause of what accounted for such banks to become insolvent, First Deputy Governor of the BoG, Dr. Maxwel Opoku-Afari has said.

    Reports indicate that the BoG pumped in Ghc20 million daily to enable cheques of such banks to go through clearing, as their capital adequacy ratio was in negative and thus had to depend on life support. The capital injection was necessary as the central bank had to take pragmatic measures to ensure smooth running of the entire clearing and payment system.

    Read: BoG maintains Monetary Policy Rate at 16% again

    Instructively, the central bank has maintained that such occurrence prior to the revocation of their operational licenses defeat the argument and sentiments expressed by the public on the failure of BoG to rather institute effective and convenient measures to bail up such banks.

    Some even noted that to ensure financial inclusion in the sector and protect businesses, the central bank had no option than to give monies directly to the banks to make them somewhat liquid rather than revoking their licenses.

    Answering a question based on a similar sentiment expressed by one of the participants during the Ghana Industrial Summit and Exhibition (GISE) 2019 held in Accra last week, Dr. Opoku-Afari noted that the collapsed banks had their licenses revoked because they were operating fraudulently coupled with poor risk management.

    “Some institutions take depositors money and give it to related party institutions without adhering to the laid down rules. There are rules as to how you can give loans to related businesses.

    But if you break those rules and then syphon monies to these related institutions, do you think that to ensure financial inclusion, the BoG should pump more money into those banks? The best thing to do is to revoke their license to prevent it from spilling over to affect other strong institutions”, he queried and explained.

    Read: BoG to sanction institutions pricing in dollars

    Instructively, the net effect of the clean up exercise was necessary in the sense that it prevented disorderly collapse of the banking sector, the central bank maintains.

    So far, out of a total Ghc10 billion spent to protect depositors funds from the collapse banks, the central bank has just managed to retrieve about Ghc849 million, representing a paltry 8.4 percent.

    The gathering was aimed at supporting industrialization and export competitiveness on a sound financial ecosystem organized by the Association of Ghana Industries.

    Source: goldstreetbusiness.com