Submit prudential reports on sex-disaggregated basis — BoG directs banks, others
THE Bank of Ghana (BoG) now requires banks and other deposit-taking institutions to submit their monthly prudential returns to it on a sex-disaggregated basis.
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The new directive, which is to be compiled in an online reporting portal, is to give the regulator a full view of the gender dynamics in the financial sector.
It is part of efforts by the central bank to help address current data constraints on gender in the financial sector, the Governor of BoG, Dr Ernest Addison, said in Accra.
It will also help to provide critical data for the evidence-based design of policymaking, regulation and supervisory measures, as well as financial products and services, Dr Addison told executives in the financial sector in Africa.
AFAWA launch
Dr Addison made the disclosure at the launch of the Affirmative Finance Action for Women in Africa (AFAWA) Finance Series in Accra on Wednesday.
AFAWA is an initiative by the African Development Bank (AfDB) meant to, among other things, unlock up to $3 billion in finances for women in the small and medium-scale enterprise (SME) space in Africa.
It was launched at a two-day workshop that brought together experts on finance, SMEs and gender to deliberate on how to improve women-led businesses to help uplift the continent.
It aims to reduce the funding gap facing women entrepreneurs on the continent, which is estimated to be $42 billion.
It will run for five years and has the Ghana Association of Banks as a local partner.
Credit market
Beyond using regulations to encourage financial institutions to support female-led entrepreneurs, the BoG Governor gave an assurance that the central bank would
continue to strengthen its critical credit markets infrastructure such as the credit bureau-based credit reporting system and our Collateral Registry.
These, he said, were critical in helping to facilitate lending to MSMEs and women-owned businesses.
“We also continue to ensure that our regulation of the payments space is supportive of innovation and inclusion by allowing financial technologies (fintechs) and other payments system service providers to partner with banks and other licensed financial institutions to provide innovative financial services that are convenient, cost-effective and responsive to the unique needs of women entrepreneurs,” he added.
Role of the financial sector
Dr Addison said the financial sector was key in advancing access to finance for women-owned businesses and thus urged the players to take up the challenge and see the business opportunities that remain untapped in the women's market.
He said it was only through this that they can help to build a stronger and more resilient financial sector.
Achievements
The Governor said the central bank was fully committed to promoting inclusive finance, and gender-inclusive finance in particular.
He said it was realising that commitment by creating a regulatory environment that promoted financial stability.
As a member of the Alliance for Financial Inclusion, BoG has made commitments under the Denarau Action Plan on Gender Inclusive Finance to advance gender-inclusive finance with emphasis on promoting women’s access, usage and quality of financial services and products.
“In November 2019, BoG launched Ghana’s Sustainable Banking Principles –a set of seven ESG–related principles, which enjoins banks to, among other things, promote financial inclusion and gender equity in their internal operations and in relation to their delivery of products and services to clients.
“Banks are currently reporting to us on a quarterly basis, in compliance with these principles, and we expect to see higher levels of compliance,” he said.
Dr Addison was optimistic that the AFAWA initiative would be critical in supporting the banks with the necessary capacity building and sources of funding to support their efforts at improving more gender-inclusive finance.
