Undercapitalised institutions to lose out on Deposit Protection Scheme
Undercapitalised financial institutions, as well as institutions that breach regulatory and prudential norms risk losing out on the Deposit Protection Scheme, the Bank of Ghana (BoG) has disclosed.
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Parliament recently passed a Deposit Protection Bill which will establish a deposit protection scheme to protect depositors from unforeseen circumstances that may result in loss of funds.
However, a Deputy Governor of the BoG, Dr Johnson Asiama, speaking at the 15th Ghana Banking Awards, said its implementation would pose serious challenges to undercapitalised institutions because they would not qualify to participate in the scheme. He said that could clearly impact on their ability to thrive.
That notwithstanding, he said the BoG, in collaboration with the German Government, had started work on the establishment of the scheme.
He said that would ensure protection for small depositors and enhance the safety of the financial system which would hopefully lead to increased deposit mobilisation for investment and growth.
Specialised Deposit Taking Bill
Dr Asiama also pointed out that the Specialised Deposit Taking Bill which had also been passed by Parliament would be complemented by a number of regulations and directives to help enhance the banking environment.
He said some of the regulations would include corporate governance regulations, licensing regulations outsourcing directive and risk management directive.
Others are external auditor’s regulations, mergers and acquisitions directive and information technology standards.
He said those would address the gaps and inconsistencies in the banking laws and also deepen cooperation with regional counterparts to improve the regulation and supervision of foreign banks active in the country.
That, he was of the belief, was consistent with its financial sector reform agenda which aimed at promoting efficient savings mobilisation, enhancing the competitiveness of the country’s financial institutions, ensuring a stronger and user-friendly regulatory regime and achieving a deepened and diversified domestic financial sector.
Fidelity tops all
Fidelity Bank Limited came out top at the 15th edition of the Ghana Banking Awards by winning the overall bank of the year award.
The bank was also adjudged the Corporate Social Responsibility Bank of the year and Trade Deal of the year.
Capital Bank also won three awards on the night. They are the Best Growing Bank award, the Best Bank in Household Financing and the newly created category, Best Bank, Savings and Deposit.
Ecobank Ghana was also adjudged Best Bank, Financial Performance, with the Stanbic Bank and uniBank Ghana, winning Best Bank Product Innovation and Best Bank in long-term loan financing respectively.
The Chairman of the Awards Planning Board, Nana Otuo Acheampong, said the awards were based on a careful assessment on the published financial results of the 28 banks by Auditing Firm Ernst & Young (EY).
Special Awards
Five distinguished personalities in Ghana’s banking industry were also honoured with Lifetime Achievers Awards for their transformational contributions to the country’s banking industry.
They are Mr Albert Essien, former CEO of Ecobank Transnational Incorporated, Mr Frank Adu Jnr, Managing Director of CAL Bank, Mr Joseph Nii Budu Tetteh, former Managing Director of the then Merchant Bank, Mr Prince Kofi Amoabeng, Founder of UT Bank and Mr Philip Kwasi Buabeng, a Chartered Banker and lawyer.