Banking Regulatory Framework in Ghana: 'Strengths, Weakness, Opportunities and Threats'

Abstract

The Ghanaian Financial sector in retrospect has gone through a series of changes in its legislative instruments, giving the sophisticated and innovative nature of contemporary banking. The modern practice further requires a high level of checks and balances to mitigate unforeseen risks in the banking sector. Significantly, the legislative instrument that sought to govern the authorization and regulation of the banking sector is the Bank of Ghana Act of 2007 which aims at regulating and supervising the banking and credit system to ensure prudent financial operations in the banking and non-banking sector. The main purpose of this paper is to analyze the strength and weaknesses, opportunities and weakness inherent the Banking and financial regulatory framework of the Ghana Banking Act. In view of the threats confronting the sector, a pragmatic step to strengthen the operations of banks and other financial institutions in Ghana will require domestic regulations to be formulated in tandem with International regulations to encourage trading among other countries in the global community coupled with the development of the derivative market. This will open more opportunities for banks and investors to diversify their investments.

Keywords: financial sector, legislative instruments, Act, financial operations, credit, systems