BoG to institute “fit and proper” measures in the Banking Sector

By Hagar Ofosua

The Bank of Ghana has announced that it will institute some “Fit and Proper” measures to streamline the activities banks in the country. The move comes following the collapse of five banks into the Consolidated Bank Ghana Limited.

  In an interview on Accra-based Joy FM, Head of Banking Supervision of BoG, Osei Gyasi, explained these ‘fit and proper’ measures will be binding on the entire bank especially, shareholders, directors of the bank and key management staff.

“When we talk about fit and proper measures it cuts across the entire bank with emphasis on shareholders, directors of the bank and key management staff. These are People who constitute the top Hierarchy of the institution and that is not to say that other staff manager of the bank should not be fit and proper.”

Secondly, Mr.Gyasi noted key management staff must be people who are clean of any financial malpractice.

 “For somebody to be described as being fit and proper, the person must have integrity. For instance, if the person has run down a bank, or has been involved in serious financial malpractice in a bank, or any other institution such a person will not be fit and proper because that person has integrity issues."

Read Also: EOCO begins investigations into the collapse of 5 banks

“Bank of Ghana has put in place measures to have a register of people who have being involved in bank failures and other malpractices, as well as banks, are concerned, a black hook will be monitoring these people,” he said.

Thirdly, He added interviews would be conducted on key management staff of the bank before it will be given the approval to begin operation.

“A board member, managing director, or key management of the staff must have the relevant experience to be able to run a bank. So we will look out for those people even if there’s the need to interview those people before approval will the given.”

Finally, he added the central bank would look at qualification, to ensure their key management staff is from accredited institutions before approval will be given, also the Bank itself would have a checklist for qualification and do its background checks to ensure the right people are put in the helm of affairs.

Read Also: Heads of collapsed banks could be prosecuted –BoG hints

Ghana News: latest news from Ghana