The Bank of Ghana (BoG) has issued a directive to financial institutions, emphasizing the importance of adhering to the Banks and Specialised Deposit-Taking Institutions Act, 2016, and the Fit and Proper Persons Criteria.
The notice, signed by BoG’s secretary, Sandra Thompson, specifies that individuals directly implicated in the 2017–2019 financial sector clean-up and former directors of failed banks are barred from holding key positions in the financial sector.
The notice highlights that excessive and imprudent risk-taking led to the collapse of banks and other deposit-taking institutions. Consequently, individuals involved in such risky practices should not be permitted to occupy key positions in banks and financial institutions.
“Poor corporate governance significantly contributed to excessive and imprudent risk-taking in the financial sector, leading to the failure of some Regulated Financial Institutions (RFIs) licensed by the Bank of Ghana. This necessitated the 2017-2019 banking sector clean-up,” the notice stated.
To maintain the improvements achieved from the clean-up, BoG issued the Corporate Governance Directive in 2018 and the Fit and Proper Persons Directive in 2019. These directives aim to strengthen and embed sound corporate governance practices in RFIs and reinforce BoG’s gatekeeping role in the financial sector.
The notice clarified that the ban applies to individuals who worked with a financial company that had its license revoked, was wound up by a court or other competent authority, or entered receivership, insolvency, or involuntary liquidation.
BoG reiterated that individuals directly implicated in the 2017-2019 Financial Sector clean-up, as well as all former directors of failed banks and SDIs since the enactment of the Banks and Specialised Deposit-Taking Institution Act, 2016 (Act 930), are not eligible to hold key positions under the Fit and Proper Persons Criteria.
