Banking Act under scrutiny tomorrow

Accra, Aug. 24, GNA - Financial experts, bankers and industry players from the Bank of Ghana are set for a conference to deliberate on the new Banking Act (Act 673) with the view to analyzing the Act and Ghana's entire financial sector reform.

The conference is to examine the Basle Accord, which the Act seeks to introduce in the Ghanaian financial sector. The Basle Accord introduces strict international best practices within the banking industry to promote ease and security in international banking. The new principles of the Act refer to prudential rules like higher minimum paid up capital, capital adequacy of 10 per cent and a higher degree of autonomy of Bank of Ghana, especially regarding the licensing of banks.

Ms Sonja Rappold, Financial Consultant of Support Programme for Enterprise Empowerment and Development (SPEED), organizers of the programme, told the Ghana News Agency that targeted reforms are expected to release dynamism into the financial industry and increase stability leading to better performance for the benefit of the private sector. "After eight months of experiencing the new Act, the time has come to look back and assess the changes the new Act has brought to bear on the banking and financial sector."

Ms Sonja said SPEED aims at increasing the level of awareness for the requirements of the new Banking Act in the banking industry and to enhance the sharing of first hand experiences and perspectives between regulators and practitioners.

At the event, the Bank of Ghana is expected to explain circumstances leading to the formulation of the law, while industry players would present a view from the international, universal and rural banking perspective.

Topics to be treated include "Legal Framework of the new Banking Act"; "Prudential Requirements Under the new Banking Act" and "Banking Supervision".