Tag: BoG

  • Money supply showed significant expansion in the first ten months of 2020 – BoG

    Of the total debt stock, domestic debt was GH¢135.3 billion, 35.1% of Gross Domestic Product (GDP), of which the financial sector bailout accounts for 4 per cent of GDP, while external debt was GH¢138.5 billion (35.9% of GDP), Governor of the Bank of Ghana, Dr Ernest Addison has said.

    The government spend over GH¢21 billion of the taxpayers money to clean up the financial sector.

    Dr Addison said the Monetary Policy Committee (MPC) press conference in Accra on Monday November 23 that budget implementation through September 2020 was broadly in line with the revised mid-year Budget estimates following the introduction of fiscal measures to combat the COVID-19 pandemic.

    Provisional data for the first three quarters of 2020, showed an overall budget deficit of 9.0 percent of GDP against the target of 8.9 percent of GDP.
    The primary balance also recorded a deficit of 4.1 percent of GDP, marginally above the target of 4.0 percent of GDP. Over the review period, total revenue and grants amounted to GH¢36.3 billion (9.4% of GDP) compared with the target of GH¢35.7 billion (9.3% of GDP).

    Total expenditures and arrears clearance amounted to GH¢70.9 billion (18.4% of GDP), marginally above the target of GH¢70.0 billion (18.2% of GDP). The deficit was financed mainly from domestic sources.

    “These developments impacted the stock of public debt which was 71 percent of GDP (GH¢273.8 billion) at the end of September 2020 compared with 62.4 percent of GDP (GH¢218.2 billion) at the end of December 2019. Of the total debtstock, domestic debt was GH¢135.3 billion (35.1% of GDP), of which the financial sector bailout accounts for 4.0 percent of GDP, while external debt was GH¢138.5 billion (35.9% of GDP),” he said.

    He added “Money supply showed significant expansion in the first ten months of 2020, reflecting the complementary monetary policy and fiscal stimulus measures taken to support efforts to minimize the impact of the COVID-19 pandemic. M2+ grew by 30.0 percent, year-on-year compared with 16.3 percent in the corresponding period of 2019.

    “The increase in total liquidity was mainly driven by the net domestic assets of the central bank and the commercial banks. Net domestic assets increased sharply by 36.1 percent year-on-year in October 2020, compared with 17.1 percent in the same period of last year, while net foreign assets moderated by 6.0 percent from 13.4 percent over the same comparative period. In terms of components, the growth in M2+ reflected mainly in currency outside banks and demand deposits.

    “Net outstanding claims on the private sector, which also captures repayments to the banking sector, show some moderation since the beginning of the year. With respect to new advances, the data shows that cumulatively from the beginning of the year, new loans to support economic activity stands at GH¢27.4 billion compared with GH¢21.3 billion for the same period of last year.”

    Meanwhile, the MPC has kept the policy rate at 14.5 per cent.

    Source: 3 News

  • Scale up support for SMEs Freda Duplan to BoG

    The Board Chair of the Zenith Bank, Freda Duplan, has asked the Bank of Ghana (BoG) to make deliberate efforts to support small and medium scale enterprises (SMEs) secure loans from banks to grow their businesses.

    She explained that some analysts are asking commercial banks to give out loans to the SMEs below the base points to enable them to expand especially in times of the pandemic.

    However, she said, without the support of the central bank the commercial banks will not be able to give out loans below the base point.

    Ms Duplan was speaking during the Ghana Economic Forum in Accra.

    She said that “there has to be a deliberate decision and support to give them some form of subsidised interest rates.

    “This will have to be done together with the Bank of Ghana, because there is a base lending rate and then on top of it comes.

    “So if the base is already high, it is then very difficult for a bank to go lower than the base lending rate.

    “For those of you who remember, for example, the EU had a lot of subsidies over the years, they have reduced a lot of these subsidies and the interventions. We as a continent and especially as Ghana, are going have to do the same.”

    Source: 3 News

  • License Ghanaian banks to provide Islamic products Gatsi tells BoG

    Commercial banks in Ghana that are interested in rolling out Islamic products should be given the license by the Bank of Ghana (BoG) to do so, Professor John Gatsi, Dean of the Business School at the University of Cape Coast (UCC), has said.

    Islamic banking is banking or financing activity that complies with sharia (Islamic law) and its practical application through the development of Islamic economics. They mostly provide interest free loans.

    As of 2010, Islamic financial institutions operate in 105 countries.

    According to the 2016 World Islamic Banking Competitiveness Report, Saudi Arabia, Malaysia, United Arab Emirates, Kuwait, Qatar, and Turkey represented over 87% of the international Islamic banking assets.

    A 2006 report by ISI Analytics also lists Saudi Arabia at the top and Iran as insignificant.[203][62] In Qatar, Islamic banking assets were valued at $97 billion at the end of 2017, accounting for nearly 81% of total Islamic finance assets, according to QFC Authority chief executive officer Yousuf Mohamed al-Jaida.

    The country also announced the launch of an energy-focused Islamic bank with $10 billion capital in 2019, which would make it the biggest Islamic lender for energy projects in the world.

    Speaking on TV3’s New Day, Professor John Gatsi, who is also an economist said “Any of the commercial banks in Ghana that is interested in putting out Islamic financial products will go in for that license to do so and be begin to offer those product to the public and for businesses.

    “So it is not about whether it is government or it is private. It is for the financial and regulator needs to inculcate its principles to ;provide that window and the road map through which banks will now role pout this financial product.”

    Source: 3 News

  • Mahama did not borrow from BoG to finance 2016 budget – Terkper

    Former Minister of Finance, Seth Terkper has denied claims that the erstwhile Mahama administration borrowed from the Bank of Ghana (BoG) to finance the 2016 budget.

    “As the Minister for Finance at the time, I wish to clarify that the Mahama Administration did not borrow directly from BoG to finance the 2016 Budget.

    “I signed the Non-Lending Memorandum of Understanding (MOU) with the Governor of BoG, as an IMF Conditionality under the IMF Enhanced Credit Facility (ECF) Agreement, even as we went through the Crude Oil Price Shock (2014 to 2016) and Nigeria Gas Supply (Dumsor) crisis…” Mr Terkper said in a statement copied to ClassFMonline.com.

    He explained further below:

    BoG performs various roles on the Financial Markets for Government, including borrowing on behalf of Government (MOF).

    A) Borrowing for (on behalf of) Government from Banks and individuals.

    These short-term and medium-to-long term loan instruments are called T-Bills, Notes, Bonds etc .

    Upon borrowing, they become GoG instruments and GoG loans.

    In the Budgets and Debt Reports, while BoG is shown as the “source” of securing these loans, it does not mean that the Central Bank did the lending directly to Government.

    Hence, it is a big mistake for the FACT-CHECK to classify these as BoG lending directly to the Mahama Government.

    Note that BoG itself is in the Financial Markets to lend and borrow to manage the sector.

    B) BOG Lending TO Govt (directly, on its own).

    These are simply called Short-term Advances to Government in Budgets and Debt reports.

    They did NOT show in Appendix 1 of the 2016 Report because

    (I) there was no new BoG Advance in 2016 and earlier; and

    (Ii) GoG and BoG agreed in 2014 or 2015 to turn the outstanding balance or stock of past Advances into a long-term Bond.

    C) BoG 5% Limit in Act

    While the BoG Act allows it to make an Advance of up to 5 percent to Government, as explained earlier, the IMF ECF Agreement did not allow the Mahama Administration to borrow from BoG.

    D) Conclusion

    The only substantive amount that GoG received from BoG at the time was “Dividend”, as sole Shareholder of the Bank. This routinely shown as Non-Tax Revenue in Budget.

    Source: Class FM

  • REPO trading goes online from October 1 – Bank of Ghana

    The Bank of Ghana has announced that the trading of Repos in Ghana will go online from October 1, 2020, allowing trades to be executed in real time, using a framework provided by the Global Master Re-purchase Agreement (GMRA) a globally recognized legal document.

    This follows the launch of the Guidelines for Re-purchase Agreements in Ghana, which is in line with Section 134 (5) of the Bank and Specialised Deposit Taking Institutions Act (Act 930).

    According to a statement issued by the BoG, all participating banks have been directed to execute a GMRA with each other by September 15, 2020. This will take place prior to the October 1,2020, scheduled commencement of live trading scheduled.

    “Repo counterparties may use the appropriate systems to facilitate their conduct of GMRA based Repos. The buyer of a Repo Security shall mark-to-market using Bloomberg as a pricing source. Where Bloomberg does not price a Repo Security, the buyer and seller shall agree a price for this purpose,” the Bank said.

    Real time trading in repos between banks will significantly improve the capacity of a bank facing short term liquidity challenges to ride through them without any inconveniences for its customers, as such a bank would simply issue repos for cash to other banks over a short, agreed tenor.

    In the anticipation of the loss of value of the collateral security that may be experienced if it is liquidated following an event of default by a counterparty, the buyer shall apply an extra margin at the initiation of the Repo transaction which would serve as compensation.

    In July, 2020, the central bank also announced that GMRA-based repos qualify as eligible financial contracts to which netting arrangements as stated under Section 134 of the Bank and Specialised Deposit Taking Institutions Act (Act 930) can be applied.

    According to section 134 (4), “net termination value” means the net amount obtained after setting off the mutual obligations between the parties to an eligible financial contract in accordance with the provisions of that contract.

    GMRA-based guidelines contain a key feature which allows the transfer of title of collateral securities from the seller to the buyer. The title transfer under GMRA reduces credit and liquidity risk, as it allows the buyer to make use of the collateral during the tenor of the transaction, but return the same or equivalent securities to the seller at maturity.

    Some market analysts have indicated that ultimately, these dealings should boost secondary market trading and price discovery of bonds and offer a cheaper source of short-term funding at increased volumes. Repo transactions between banks fit in well with their agreed strategy of supporting each other with liquidity whenever the need arises so as to prevent the need for the BoG to intervene with regulatory actions that sometimes affect the entire industry in a systemic manner. Such transactions thus serve as a fixed tenor alternative to interbank lending which is usually done on the basis of call which means placements by a bank can be called in any time the lending bank wishes, the timing of which may be inconvenient for the bank receiving the placement and thus is more convenient for the borrowing bank than interbank lending on call.

    Background

    Repos are effective tools for effective monetary policy transmission and serve as a channel through which the central bank can act more swiftly as a lender of last resort during periods of market stress.

    Currently, repos and reverse repos in the domestic financial markets are already serving as effective instruments for the conduct of monetary policy through open market operations by the central bank and as sources of short-term liquidity for market participants.

    According to the Central Securities Depository (CSD), as at end May 2020, a total of GHc 51.63 billion in repo transactions had been settled. Transactions between commercial banks amounted to GHc 56.550 billion, whereas the transactions between BoG as well as SNNIT with commercial banks amounted to GH 725 million and GHc 11.349 billion.

    Source: goldstreetbusiness.com

  • Ex-Venture Capital CEO, others begin refunding money to state

    The three former officials of the Venture Capital Trust Fund who were convicted have started refunding money to the state per the arrangement with the court in order to avoid jail terms.

    Former CEO Daniel Duku was asked to refund over 15 million cedis.

    Irene Anti Mensah, Executive Assistant to the CEO, Frank Aboagye Mensah husband to the executive assistant are both to refund more than two million cedis.

    Speaking at the Public Accounts Committee, CEO for Venture Capital Trust Fund Yaw Owusu Berempong, revealed the three have started paying the amounts after admitting to given loans to themselves in the name of other companies.

    According to him, if the three fail to pay the total amounts in 3 months they will be sent to jail.

    Background

    The three accused persons, Daniel Duku (1st Accused), Irene Anti-Mensah (3rdAccused) and Frank Aboagye Mensah (5th Accused), entered into negotiations with the Attorney General under Section 35 of the Courts Act, 1993, (Act 459), a provision that allows accused persons to offer compensation and restitution to the State for the loss, harm or damage caused the State.

    The accused persons per the agreement changed their plea from a not guilty to guilty and they were convicted on their own plea by the court.

    Fines

    Per the agreement reached, Mr Duku will pay an amount of GHC15,000,000.00 to the Venture Capital Trust Fund (VCTF) and a fine of five hundred thousand Ghana cedis (GH¢500,000.00) to the State.

    Anti-Mensah, is to pay GH1.5M to the Venture Capital Trust Fund (VCTF) and a fine of One Hundred Thousand Ghana cedis (GH¢100,000.00) to the State.

    Frank Aboagye Mensah is to pay (GH¢1,195,000.00) to Venture Capital Trust Fund (VCTF) and a fine of One Hundred Thousand Ghana cedis (GH¢100,000.00) to the State.

    As part of his terms, the first accused, Daniel Duku, is to forfeit about eight (8) buildings at the Agyekum Presidential Villa at Adjiringano and Georgetown Heights 6 apartments of 3 bedrooms each, and five (5) vehicles, including a Porsche Cayenne and Porsche Panamera, to the State.

    The accused persons are expected to make good all the payments within three months from Friday, July 10, 2020.

    Charges

    Per the charge sheet of the State as presented in Court, the first accused person, Daniel Duku was charged with the offences of Wilfully causing financial loss to the Republic contrary to section 179A (3) (a) of the Criminal Offences Act, 1960, (Act 459), Stealing contrary to section 124(1) of the Criminal Offences Act, 1960 (Act 29), Money Laundering contrary to section 1(1) (c) of the Anti-Money Laundering Act, 2008, (Act 749) and Issuing of False cheque contrary to section 313A (1) (6) of the Criminal Offences Act, 1960, (Act 29).

    The 3rd accused person, Irene Anti-Mensah, was charged with the offences of Abetment of crime namely Wilfully causing financial loss to the Republic contrary to sections 20(1) and 179A (3)(a) of the Criminal Offences Act, 1960, (Act 459), Abetment of crime namely defrauding by false pretence contrary to sections 20(1) and 131(1) of the Criminal Ofences Act, 1960 (Act 29) and Conspiracy to steal contrary to sections 23(1) and 124(1) of the Criminal Offences Act, 1960(Act 29).

    The 5th accused person, Frank Aboagye Mensah, on the other hand was charged with the offences of Defrauding by false pretence contrary to section 131(1) of the Criminal Offences Act 1960 (Act 29), Conspiracy to steal contrary to sections 23(1) and 124 of the Criminal Offences Act 1960 (Act 29), Stealing contrary to section 124(1) of the Criminal Offences Act, 1960 (Act 29) and Money Laundering contrary to section 1(1)(c) of the Anti-Money laundering Act, 2008 (Act 749).

    Source: Starr FM

  • It didn’t make sense to continue supporting the collapsed banks – Bawumia

    Vice President Dr Mahamudu Bawumia says government had no option than to shut down some banks and financial institutions in the country.

    He said even though the situation is sad it didn’t make sense to continue supporting these banks that are suffering.

    “It was bad . . . when I saw the numbers at the time it was quite frightening,” he said.

    He said the banks were using the Central Bank’s liquidity support for other purposes.

    This follows claims that government could have used other means to save the banks and prevent the loss of jobs.

    The Vice President who was speaking in a one-on-one interview with Kwami Sefa Kayi on Peace FM’s morning show ‘kokrokoo’ said the then NDC administration was aware of the situation but did nothing about it and rather kept offering liquidity support.

    “The NDC was aware there was a problem . . . these were bad practices of government but we had to step in,” he stated.

    “By the time we got into office things were unraveling; we were on the brink of the collapse of the system so the BoG had to rescue the situation. This is one of the most important acts that have been done to save the economy.”

    Source: Peace FM

  • Cheque fraud in Ghana increased in 2019 BoG

    The number of cheque fraud cases increased marginally by 2.56 per cent from 39 cases in 2018 to 40 cases in 2019, the Bank of Ghana (BoG) has said.

    This, according to the central bank, includes fraud incurred as a result of cloned cheques, stolen cheque leaflets and cheque alteration.

    Notable, however, is the increase in the number of cases reported as cheque cloning, which originates from the operation of syndicates involving staff of financial institutions, telecommunications companies and cheque-printing houses.

    The BoG further announced that the banking industry reported approximately GH¢115.52 million as fraud to the central bank.

    Of the total values reported, the BoG said, approximately GH¢33.44 million, representing 28.96 per cent was reported as losses incurred while approximately GH¢82.06 million, representing 71.04 per cent was recovered.

    The Bank of Ghana recorded a total of 2,295 cases of fraud, representing a 5.4 per cent increase in cases reported in 2018.

    Rural and community banks reported 55 per cent of the total cases, and commercial banks and savings and loans institutions reported 23 per cent and 22 per cent of the cases respectively.

    In total, 83 institutions reported cases in 2019, as compared to 72in 2018.

    Source: Ghana Guardian

  • Treasury bill rates for June 2020 decline to 14.0 percent – BoG

    The Bank of Ghana (BoG) has said the 91-day Treasury bill rate for the month of June 2020 has declined to about 14.0 percent from the 14.8 percent recorded a year ago in 2019.

    According to the Governor of the Bank of Ghana, Dr Ernest Addision, the interest rate on the 182-day instrument also declined to 14.1 percent from 15.2 percent for the period.

    Speaking at the 95th meeting of the Monetary Policy Committee of the central bank on Monday July 26, Dr Addison said; “Rates on the 2-year, 3-year and 5-year instruments decreased marginally to 18.8 percent, 18.9 percent, and 19.3 percent respectively, from 19.8 percent, 19.7 percent, and 19.8 percent.”

    He added; “Yields on the 6-year, 7-year, 10-year, and 15-year bonds remained unchanged at 21.0 percent, 16.3 percent, 19.8 percent, and 19.8 percent, respectively. Yield on the 20-year instrument has moved up from 20.3 percent from September 2019 to 21.5 percent in June 2020”

    The Governor also noted, interest rates on the money market reflected downward trends at the short end and mixed trends at the medium to long-term segments of the market.

    Treasury bills on the other hand, are risk-free investment that entail short-term loans that are guaranteed by the government and used to finance various of its operations. It also offers a benchmark for determining the value of any investment and is cited as one of the most secure and popular investment options in Ghana.

    The maturity of treasury bills spans through a 91-day and a 365-day period with each of them offering different returns on investments.

    For the central bank’s meeting, the Monetary Policy Committee maintained the policy rate at 14.5 percent, citing the need for macroeconomic stability amid the disruption caused by the coronavirus pandemic.

    “The Committee was of the view that the current extraordinary circumstances, with a widened budget deficit and a residual financing gap, would require some monetary restraint to preserve the anchors of macroeconomic stability. In the circumstances, the Committee decided to maintain the policy rate at 14.5 percent,” the Governor explained.

    Source: www.ghanaweb.com

  • BoG boosts repo trading market with new directive

    To further boost repo trading on the Ghana Fixed Income Market (GFIM), the Bank of Ghana has issued a new directive, allowing banks and other contractual counterparts to easily settle differences in repo transactions.

    The directive takes effect from July 2020, in line with Section 134 (5) of the Bank and Specialised Deposit Taking Institutions Act (Act 930).

    This follows the implementation of the Global Master Repurchase Agreement (GMRA)-based Guidelines in April 2020.

    The Bank of Ghana indicated that pursuant to Section 134 of Act 930, all Global Master Repurchase Agreements transacted (GMRA-based repos) qualify as eligible financial contracts to which netting arrangements shall apply.

    According to the section 134 (4), “net termination value” means the net amount obtained after setting off the mutual obligations between the parties to an eligible financial contract in accordance with the provisions of that contract.

    GMRA-based guidelines contain a key feature which allows the transfer of title to collateral securities from the seller to the buyer. The title transfer under GMRA reduces credit and liquidity risk, as it allows the buyer to make use of the collateral during the tenor of the transaction, but return the same or equivalent securities to the seller at maturity.

    Some market analysts have indicated that, ultimately, these dealings should boost secondary market trading and price discovery of bonds and offer a cheaper and increased volume source of short-term funding.

    The repos are effective tools for effective monetary policy transmission and serve as the channel through which the central bank can act more swiftly as a lender of last resort during periods of market stress.

    Currently, repos and reverse repos in the domestic financial markets are already serving as effective instruments for the conduct of monetary policy market operations by the central bank and as sources of short-term liquidity for market participants.

    According to the Central Securities Depository (CSD), as at end May 2020, a total of GH¢51.63 billion of repo transactions had been settled. Transactions between commercial banks amounted to GH¢44.46 billion, whereas the transactions between BoG as well as SNNIT with commercial banks amounted to GH¢725 million and GH¢6.44 billion.

    Source: goldstreetbusiness.com

  • We did not conspire with BoG to collapse Ghanaian banks – Ofori-Atta

    The Minister of Finance, Ken Ofori-Atta says government did not to conspire with the Central bank, the Bank of Ghana (BoG), to collapse some indigenous Ghanaian banks that were affected in the financial sector clean-up exercise.

    According to him, government has no time and energy to collapse Ghanaian banks, urging the people who hold the view that the government conspired with the Central Bank to deliberately collapse some Ghanaian banks to speak the truth.

    He said as of the time the current government took over power from the then governing National Democratic Congress (NDC), all the collapsed banks “were totally insolvent” due to mismanagement which was happening in the financial sector.

    Mr Ofori-Atta, who was presenting the mid-year budget today [Thursday, July 23, 2020] at Parliament, said the government was only interested in fixing the broken economy they inherited.

    “As a serious government as we are, and as patriotic as we are, we absolutely have no time, no energy, to conspire with the central bank to deliberately collapse Ghanaian banks,” he said.

    He explained that as a result of mismanagement in the banking sector, funds of depositors have been locked up with no hope of such depositors accessing their funds.

    Mr Ofori-Atta said what the government did in the banking sector was a usual practice in the banking sector globally, and that the exercise was aimed at straightening the banking sector and boosting the confidence of customers.

     

    Source: Graphic.com.gh

  • BOG dead silent on new cedi notes video – As man captured in footage dies mysteriously

    A video containing huge bundles of the newly printed GHc100 and GHc200 notes believed to be amounting to billions of Ghana cedis, has hit the internet igniting wild speculations among social media users and political party fanatics, as to who owns it and what it was meant for.

    The amount seen in the footage, could only have come from the Bank of Ghana (BoG), as the commercial banks could not be allowed to harbour such.

    The video, which has been making the rounds for some days now, has raised eyebrows, but the BoG is yet to provide answers on ownership of the money estimated to be in the region of GHc4.5 billion or GHc5 billion, and for what purpose, although the video and pictures have been in circulation for some days now.

    However, the lack of answers is not even the interesting part. The only man, whose face was shown in the video identified as Richard Baah Appiah alias “Abrokyire”, The Herald gathered, has suddenly died, fueling fresh speculation that, he might have been murdered by some element among his circles for filming and releasing the footage on the cash.

    He is said to be a card bearing member of the governing New Patriotic Party (NPP).

    Richard is said to have died three days after the video and a picture which was taken of him sitting on the huge cash. He wasn’t sick, The Herald gathered, he just died, while the whereabouts of the person, whose home the said the money was packed continue to be a mystery.

    It is speculated that, Richard was flushed out because those behind the money don’t want it to be in the public domain, since he was the only one whose face was in the picture and could be the only credible source for investigation.

    Other views are that, Richard, might have attempted blackmailing the owners of the cash, hence got killed to silence him.

    Richard is alleged to be the relation or close to an unnamed minister in the Akufo-Addo government whose home the monies were packed.

    The picture of Richard sitting on the arranged bundle of cash, hit the internet at the same time the death of the former General Secretary of the governing NPP and Executive Secretary of the Forestry Commission, Kwadwo Owusu Afriyie aka “Sir John” was reported last Wednesday night.

    Richard, who sat comfortably with his facemask hanged under his chin with another unidentified man behind him at a distance, wore a long sleeve shirt and trousers.

    Minutes after the picture hit social media, a poster showing his one-week celebration also emerged from nowhere revealing the event was marked on Sunday, June 7, 2020, at Akim Manso in the Birim Central Municipality of Eastern Region. It also falls under the Asene Akroso-Manso Constituency where George Kwame Aboagye is the NPP Member of Parliament.

    Akim-Manso, is said to be a community with a population of about 7000 people.

    The town has a presence on Facebook. Indeed, on Saturday, June 6 this year, at 10:58 am a notice was posted from Akim Oda, announcing his week funeral event which took place on Sunday, June 7, 2020, at the “forecourt of the family house” at 8 am.

    It read “Tomorrow is the one-week Celebration of our late brother and a friend, Richard Nana Baah… It will take place tomorrow Sunday, June 7 at Akim-Manso… All have to be there to show our condolences to the bereaved family members…”

    Attached to the message, was black, white and gold electronic poster bearing Richard’s picture. The notice shows he is known within the Akim-Manso community.

    Although details of the 35-year-old were not readily available, a social media user, claimed she knew him from Tema and that she was even at his one-week celebration last month.

    “I know him, he’s late was at his one week just last Saturday. He spent much of his young life in Tema and moved to Accra later but his aunty and family are still in Tema”, Akorfa Adzo Adanuvor said.

    According to Akorfa, Richard spent most of his young life at Tema, but later moved to Accra, while the rest of his family still remained. Another also claimed he knew him and that in Accra; he was based at Asylum Down.

    It is unclear why the one-week event happened in Akim-Manson and not Tema, where he was said to have spent his childhood and where his parents were said to reside.

    It is also unclear, why the event was not held in Asylum Down, where he was said to have relocated after leaving Tema.

    Meanwhile, people continue to speculate on the death of the 35-year-old, saying it might be politically motivated. According to them, Richard might have been killed by people within his political circles, having being captured sitting on the money.

    Before the picture of the deceased surfaced on the internet, a video of the cash had first hit the internet around June 30, 2020, with some faceless youth numbering about four, arranging at one side of what appears to be the hall of a very rich person.

    The leakage of the pictures and video 23 days after the one-week event at Akim-Manso, therefore, suggests someone has had access to the information either from Richard before his death or got it after his death, and decided to release them.

    While the young men, who spoke Akan, fantasized about the bundles of money, legendry Daddy Lumba’s onetime hit, Theresa Abebreseh, was played at the background.

    In the hall where the money was arranged, a framed photograph of the owner of the house was captured in the footage, however, it was not clear enough to identify the person.

    Though none of the young men’s face was shown, one of them who took the video was encouraged by the rest to go ahead and take it, while another indicated that after they were done arranging them; he will also take a shot of it for future use.

    “Yes, I will also take a shot for future use”, he said while they arrange the money in excitement.

    Another teased the other, saying “You, the company you work for have they seen such huge money before”?

    Some party fanatics of both the governing NPP and the opposition National Democratic Congress (NDC), have accused each other of being the owners of the money, claiming it is for the December 7 election campaign.

    What has not been identified since the video went viral, is who exactly is keeping these huge monies in his home at where and for what purpose.

    It is not clear, if Richard, has been buried yet and whether an autopsy had been done on him to know the cause of his death.

    It is also unclear if anything has happened to the rest of the young men, whose voices were heard in the video.

    Source: The Herald

  • BoG urges PPP to boost manufacturing capacity

    The central bank has advocated an increased Public-Private-Partnerships (PPP) in crucial infrastructure development across the country to boost the local manufacturing of key products.

    Mrs. Elsie Addo Awadzi, the Second Deputy Governor of Bank of Ghana said: “We need critical public-private sector investments in key infrastructure over the medium-term to increase the manufacturing capacity of our economy post-COVID-19.”

    Though the country recorded a positive trade balance in 2018, key imports than continue to put pressure on available foreign exchange include refined petroleum (US$738M), cars (US$466M), rice (US$425M), non-fillet frozen fish (US$303M), and delivery trucks (US$274M).

    She said the country needs to re-tool, re-equip and fund the Micro, Small and Medium Enterprises (MSMEs) to leverage technology for increased productivity so that some of the imported item can be made locally and reduce our dependence on imports.

    Mrs. Awadzi, was speaking at Engine Business Network (EBN) Micro, Small, and Medium sized Enterprises (MSME) virtual conference on the theme: “MSME manufacturing capabilities, responding to covid-19 and opportunities beyond” in Accra.

    She called for a renewed focus on equitable and inclusive growth to ensure that the MSME sector, and in particular, women and youth entrepreneurs were not left behind.

    She said the Bank of Ghana has taken steps to improve access to credit for MSMEs through the banks, savings and loans companies, microfinance companies, and rural and community banks.

    Mrs. Awadzi encouraged all the MSMEs to approach their financial institutions to explore financing and other opportunities available for them.

    “I encourage you also to engage actively with the Ghana Association of Bankers, and industry associations representing the savings and loans companies, microfinance companies, and rural and community banks, to help these institutions better understand the needs of members and to fashion out specific products and services to support you,” she added.

    She said the Central Bank was committed to ensuring that policies and regulatory measures help to promote macroeconomic stability and growth, not only for a few, but for all Ghanaians.

    She said by promoting monetary and financial stability, “we seek to create an enabling environment that supports all economic players to contribute their fair share to socio-economic development and nation-building.”

    She said the Bank of Ghana has recently launched the Ghana Sustainable Banking Principles in partnership with the Ghana Association of Bankers and the Environmental Protection Agency.

    These are a set of seven principles adopted by banks in Ghana in November 2019, by which they committed to scaling up lending to five key sectors of the economy in a manner that promotes good environmental management practices and social justice including through gender equity and access to finance for all.

    Mrs. Awadzi said while the impact of COVID 19 on the sectors has been severe, there is much hope with the recovery ahead, and there were enormous opportunities in the post-COVID world.

    “What is more, policy makers have made interventions to help cushion the impact of the pandemic on the MSME sector,” she said.

    Source: thebusiness24online.net

  • Coronavirus: BoG unable to support government if pandemic prolongs Governor

    The Bank of Ghana has hinted that it will not be in the position to financially support the government in mitigating the impact of COVID-19 if the outbreak prolongs.

    The Central Bank has already provided some GH¢10 billion to support the budget in compliance with provisions in the Bank of Ghana law. But Central Bank Governor Dr Ernest Addison said it is unsustainable for the regulator to offer more support.

    Dr Addison who was speaking in a live interview with Graphic Business.

    He said “now if you look at the case of the Bank of Ghana, we have had to finance the budget to the tune of GH¢5 billion. Under the bank of Ghana law, we have an emergency clause section 30 of the Bank of Ghana law allows the central bank in the case of an emergency to provide resources to the budget.”

    The law says that the minster of finance, the governor of the central bank and the controller and accountants general must sit to decide on how much resources the government would need.

    Dr Addison said “we estimated possible support of GH¢10 billion cedis, and we have already dispersed the first tranche of that resource. Obviously, this is an intervention that we cannot repeat because we have tried to minimize central bank financing of the budget in order to minimize its impact in terms of inflation and depreciation of the currency and all of that.”

    However, if the situation does not improve and it becomes protracted, the central bank will not be able to provide the additional resources that will be needed.,” he noted.

    Dr Addison indicated that the cedi has been depreciating because of capital flights.

    He explained “if you look at what has happened worldwide, we have seen capital needs jurisdictions such as ours into the advanced economies. Now when that happens it has an impact on the availability of dollars in Ghana and then that can trigger a depreciation of the currency.”

    “Now if you look at this year 2020, we started the year on a very strong note with very strong reserves and then also we went very early onto the capital market to issue a 3 billion dollar bond.”

    He furher explained that by January and February the cedi was appreciating.

    “If you look at the data very carefully, the Ghana cedis appreciated for nearly 2 months of 2020. Until the global shock came in, in terms of this COVID-19 pandemic and then we saw capital flowing out of countries like ours and therefore the cedi also started losing value. And then of you look at the year to date statistics, you would see that the cedi this year has depreciated by less than 2% because there had been quite a significant appreciation of the currency in the first two months of the year,” Dr Addison explained.

    Source: Starr FM

  • BoG introduces online payment service for collateral registry

    The central bank has introduced an online payment service for the Collateral Registry web-based system.

    A notice issued by the Bank of Ghana (BoG) indicates that the service is aimed at addressing the inconveniences associated with the existing pre-paid mode of payment.

    This online payment service affords clients of the Collateral Registry the option to pay for the services rendered by either Mobile Money (MTN MoMo, Vodafone Cash, and AirtelTigo Money) or Visa/MasterCard.

    During 2019, a total of 96,148 security interests were registered, compared to 82,302 registered in 2018. Also, a total of 239,705 collaterals were registered in 2019, as against 224,583 in 2018. Searches conducted in 2019 were 48,086, representing an increase of 30.3 percent over the 2018 figure.

    Under the statutory mandate of the Borrowers and Lenders Act 2008 (Act) 773, the Bank of Ghana operationalized the establishment of the Ghana Collateral Registry on February 1, 2010, to register charges and collaterals created by borrowers, to secure credit facilities provided by lenders. This was pursuant to its mandate to regulate, supervise and direct the banking and credit system, and ensure the smooth operation of the financial sector.

    The Collateral Registry operates a 24/7 web-based system, which serves lending institutions and the general public. The current modes of payment are the post-paid mode and the pre-paid mode, which require a deposit to be made at the Bank of Ghana.

    Source: goldstreetbusiness.com

  • BoG receives 30 weekly complaints from public on banking issues

    The Market Conduct Office of the Bank of Ghana receives an average of 30 weekly complaints from the public.

    This follows the completion of the Banking and Specialised Deposits-Taking Institutions sector clean-up in 2019 which has compelled the Bank of Ghana to intensify its market conduct supervision.

    The public complaints are received through phone calls, WhatsApp messages, e-mails, and direct walk-ins to the Market Conduct Office located at Cedi House in Accra.

    The central bank said the complaints typically are resolved by the Office within 20 days.

    This was revealed in its assessment of banks and SDIs compliance with its consumer protection regime.

    On-Site Conduct Supervision

    The Market Conduct Office undertakes both off-site and on-site supervision of licensed institutions with the aim of ensuring that these institutions comply with all consumer protection requirements under relevant laws and as prescribed by the Bank of Ghana.

    The maiden on-site conduct examinations were conducted by the Office from November 2019 to February 2020.

    The exercise involved officials of the Market Conduct Office visiting eight selected banks to examine the structures, systems, and processes in place to promote consumer protection and the early resolution of customer complaints, and to generally assess compliance with relevant market conduct rules.

    Specifically, the examinations covered a number of key areas including the Board and Management oversight of the complaints handling function; unfair banking practices; privacy and data protection issues; the ambience of banking halls; disclosure and transparency and the content of marketing material.

    It said the relevant banks have committed to addressing the identified issues within timelines agreed with the Bank of Ghana.

    The Central Bank concluded that it will continue to deploy all legal tools available to it to pursue its financial stability and consumer protection mandate, as well as continue to sensitize consumers on their rights and obligations in their dealings with licensed financial institutions.

     

    Source: Class FM

  • BoG introduces online payment service for the collateral registry system

    In addressing the inconveniences associated with the existing pre-paid mode of payment, Bank of Ghana (BoG) has introduced an online payment service for the Collateral Registry web-based system.

    This online payment service affords clients of the Collateral Registry the option to pay for the services rendered by either Mobile Money (MTN MoMo, Vodafone Cash and AirtelTigo Money) or Visa/MasterCard.

    With this new feature, the Collateral Registry Online Payment System will go live on Monday, 25th May 2020, and will be accessible via the URL www.collateralregistry.gov.g.

    A statement dated 21st May 2020 and signed by Sandra Thompson (Ms) said Under the statutory Mandate of the Borrowers and Lenders Act 2008 (Act) 773, the Bank of Ghana operationalized the establishment of the Ghana Collateral Registry on 1st February 2010, to register charges and collaterals created by borrowers, to secure credit facilities provided by lenders.

    This was pursuant to its mandate to regulate, supervise and direct the banking and credit system, and ensure the smooth operation of the financial sector.

    The Collateral Registry operates a 24/7 web-based system, which serves lending institutions and the general public.

    With reference to the Bank of Ghana NOTICE NO. BG/GOV/SEC/2013/10, the use of some services of the Registry requires payment. The current modes of payment are the post-paid mode and the pre-paid mode, which require a deposit to be made at the Bank of Ghana.

    Source: laudbusiness.com BOG

  • Cash transactions drop due to lockdown BoG

    The Bank of Ghana (BoG) has noted that the use of electronic means of payment went up due to the partial lockdown of Accra and Greater Kumasi following the Coronavirus outbreak.

    The lockdown led to the decline in cash transactions, the central bank said.

    President Nana Addo Dankwa Akufo-Addo, as part of his measures to tackle the COVID-19 in Ghana placed restrictions on the movements of person in these areas in the country.

    At the Monetary Policy Committee (MPC) meeting in Accra on Friday May 15, the Governor of the BoG, Dr Ernest Addison, said the lockdown resulted in a decline in currency as consumers resorted to the use of electronic modes of payment.

    “General economic uncertainty reduced demand for credit, as commercial banks tightened their credit stance. As a result, credit to the private sector remained virtually flat during the period.

    “Broad money supply (M2+) slowed significantly to 13.5 percent in March 2020, compared with 21.6 percent growth a year ago,” e said.

    Regarding the viability of the banking sector of the local economy, he said : “The latest stress tests conducted in April 2020 suggest that banks are strong and resilient and are well-positioned to withstand mild to moderate liquidity and credit shocks on the basis of strong capital buffers and high liquidity positions.

    “Capital Adequacy Ratio is well above the revised regulatory floor of 11.5 percent. However, the industry NPL ratio has inched up during the quarter, reflecting the emerging impact of the pandemic on low credit growth and higher loan provisioning.

    “So far, banks are also responding positively to the recently-announced policy initiatives to support the economy by reducing lending rates and supporting credit growth, as well as offering moratoriums on loan repayments to cushion customers.”

    Source: laudbusiness.com

  • BoG gives GHC10m to COVID-19 Trust Fund

    After President Nana Addo Dankwa Akufo-Addo, his vice and appointees donated their 3-month salary to the COVID-19 Trust Fund, many people including some members of the opposition political parties have made donations.

    Faith-based organisations and business moguls have also contributed their quota towards the growth of the national trust.

    The latest to make donations towards the course is the central bank of Ghana.

    The Bank of Ghana (BoG) on Friday, April 17, 2020 contributed an amount of GHC10 million to the COVID-19 National Trust Fund.

    “The amount is in support of the national efforts towards the fight against the COVID-19 pandemic,” the Bank of Ghana said in a press statement.

    As of April 5, a total of over GHC8 million had been collected from the general public. President Akufo-Addo made known in his 5th address to the nation.

    The Trust Fund, headed by former Chief Justice, Sophia Akuffo is expected to receive public contributions to help improve the lives of the vulnerable who will be worst-hit by the pandemic.

    The other members of the Board of trustees of the Fund are Archbishop Justice Ofei Akrofi, Jude Kofi Bucknor, Gifty Afenyi-Dadzie, Elsie Addo-Awadzie, Dr. Ernest Ofori-Sarpong, and Dr Tanko Collins Asare, who will act as Secretary to the Board.

    Source: www.ghanaweb.com

  • BoG extends deadline for meeting minimum capital requirements

    The Bank of Ghana (BoG) has extended the deadline for meeting the minimum capital requirements for the banking and specialised deposit-taking institutions, as well as payment service providers and electronic money issuers.

    The BoG in a press statement issued in Accra yesterday, signed by its Secretary, Ms Sandra Thompson and copied to the Ghanaian Times, said the deadline for meeting the minimum capital requirements by all existing payment service providers and electronic money issuers as well as banks and specialised deposit-taking institutions “is extended from June 30, 2020 to December 31, 2020”.

    “The deadline for meeting the Payment and Card Industry Data Security Standard (PCI-DSS) and International Standard Organisations 27001 certification requirements is extended from June 2020 to December 2020. This applies to all existing electronic money issuers and payment service providers that fall under the licence category required to meet the above certification,” the statement said.

    It said the deadline for meeting the minimum infrastructure and governance requirements had been extended from June 2020 to December 2020.

    “On account of security concerns, all existing financial technology firms that intend to integrate with the Ghana Interbank Payment and Settlement System (GhIPSS) are required to meet GhIPSS minimum security and control requirements by December 31, 2020,” the statement said.

    To operationalise the Payment Systems and Services Act 2019 (Act 987), the BoG issued a notice on the minimum capital requirements, permissible activities, fees, governance and systems requirements for payment service providers and electronic money issuers.

    Source: ghanaiantimes.com.gh

  • GUTA wants BoG to force FIs to waive loan repayments for six months

    The Ghana Union Traders Association (GUTA) wants the Bank of Ghana to compel all financial institutions to waive loan repayments for businesses as directed by the government.

    The Finance Minister announced in Parliament on Monday, March 30, 2020, some fiscal measures to mitigate the impact of the coronavirus pandemic.

    They include granting a six-month moratorium on principal repayments for selected businesses.

    To this end, GUTA said: “Without necessarily spelling out the details of the measures, we like to single out the granting of principal repayments for selected businesses. We believe BoG should have that stronger oversight to ensure that all financial institutions will implement this directive for all businesses to bring the needed relief to all distressed businesses at this time.

    “GUTA, however, notes the timely presentation of this statement to parliament.”

    Explaining further, the statement said: “It is very important that at this time of our lives as a people, every effort should be made to ensure that the negative impact on especially, our businesses, can be reduced through the human approach by our revenue authorities, Bank of Ghana, landlords, financial institutions and above all the government.”

    GUTA lauded President Nana Addo Dankwa Akufo-Addo and the government for their fight against COVID-19 to ensure that the impact on businesses is lessened.

    But while doing so, it advised the government to have the members of GUTA and the trading private sector in mind as far as any stimulus package is concerned, since majority of them are in the small and medium enterprises sector.

    “GUTA will continue to advise all her members and the trading private sector to adhere to all the directives of the government and to continue to follow the precautionary measures put out by the health ministry bearing in mind that yes, the economy can be fixed but not our lives, should we lose it”, the group added.

    Source: classfmonline.com

  • BoG intensifies education on electronic payments

    The Bank of Ghana (BoG) has encouraged stakeholders in the financial sector to intensify public education and sensitisation on the new electronic payment system including the use of Universal QR Code Payment Service and Proxy Pay for efficient and convenient payment.

    Speaking at the launch of the Universal QR Code and the Proxy Pay in Accra on Wednesday, Dr Ernest Addison, the Governor of the Central Bank, said the QR Code and the Proxy Pay had the potential to become the game changer by supporting merchants and non-bank entities to accept payments from customers of different financial institutions.

    The new payment solution, he said, would also speed up digitisation of payments to distributors, wholesalers, and suppliers as well as encourage users and merchants to accept and use electronic payment platforms.

    “This will further provide a boost to the financial inclusiveness through the digitisation agenda,”Dr Addison noted.

    The Governor of the Central Bank said for the public to have confidence in the electronic payments, it was imperative to create the needed awareness of such electronic payment platforms, in order to enhance public confidence and acceptability.

    Dr Addison urged financial sector players to improve the cyber security features of those payment platforms by using latest technology such as machine learning and artificial intelligence.

    Beyond that, he said, it was prudent to offer dedicated platforms for resolving customer complaints timeously, and also provide assurance to boost customers’ confidence in the electronic payment products.

    The Governor urged banks to continue working with the existing financial service providers and integrate new ones to develop new products that suited into the changing trend of the business climate.

    “Let me state that the high penetration of electronic wallets and mobile phones has positioned Ghana to leverage on the Universal QR Code and Proxy Pay to advance our quest for a cash-lite economy, as we improve financial inclusion agenda,” the Governor of BoG said.

    Dr Addison acknowledged the contributions of the Ghana Inter-bank Payment and Settlement System and other stakeholders for working diligently towards the launch of the Universal QR Code Payment Service and Proxy Pay in the country.

    Source: GNA

  • Bank of Ghana asks banks to seek approval before payment of dividends

    The Bank of Ghana (BoG) has asked banks and Specialised Deposit-Taking Institutions (SDIs) to seek its approval in writing before the declaration and payment of dividends.

    The move is to prevent banks from using funds from the reduction in the Bank’s reserve requirements and the conservation buffer.

    The BoG, as part of efforts to combat the economic impact of the coronavirus, cut its benchmark interest rate by 150 points, announced a reduction in the Banks’ reserve requirements to eight percent from 10 percent and also lowered the conservation buffer to 1.5 percent from three percent, which effectively cut the capital-adequacy ratio to 11.5 percent from 13 percent.

    “Banks and specialized deposit-taking institutions are to refrain from declaring and paying dividends or making other distributions to shareholders for the 2019 financial year unless the Bank of Ghana is satisfied that the institution is not relying on the additional liquidity released by the policy measures,” the BoG said in a statement.

    It also asked the banks to comply and not to use liquidity gained from the eased capital rules to buy government securities and warned that failure could lead to sanctions.

    “The Bank of Ghana shall monitor banks and SDIs’ financial dealings on a weekly basis, to ensure full compliance with the above directives. Failure to comply with this Notice shall attract sanctions in accordance with the relevant provisions of the Bank and Specialised Deposit-Taking Institutions Act,” it added.

    Source: GNA

  • Bank of Ghana cuts policy rate by 150 points over Coronavirus [COVID-19]

    The Bank of Ghana has reduced its benchmark policy rate by 150 basis points as its first response to the strain that the Coronavirus disease (COVID-19) is imposing on the economy.

    The policy rate determines the rate at which commercial banks determine interest rates on loans.

    With this cut, it is expected that interest rates on commercial loans will also drop.

    The bank reduced the rate, which is the benchmark for inter bank lending, from 16 per cent to 14 per cent Wednesday [March 18, 2020].

    The Governor of BoG and Chairman of the bank’s Monetary Policy Committee, Dr Ernest Addison, announced this in a statement issued Wednesday [March 18, 2020].

    The statement followed the conclusion of the 93rd MPC meeting which reviewed activities in the economy and the impact of global developments on the local front.

    Unlike before when the committee’s meetings were followed by press conferences, the bank issued a statement in compliance with the directive to avoid social gatherings in the wake of the COVID-19 scourge.

    The reduction in the rate is the first since November 2018 and is expected to combine with other factors to make cost of credit cheaper.

    The BoG policy weight carries about 40 per cent weight in the computation of the Ghana Reference Rate, the base rate for banks lending.

    Coming at a time when the central bank feared that the COVID-19 could collapse 2020 growth to five per cent or 2.5 per cent in the worst case scenario, the reduction in the rate could make funds cheaper for businesses to access and use to revitalize their operations.

    It could also make funds available to consumers, thereby raising consumer purchases for growth to rebound.

     

    Source: graphic.com.gh

  • BoG extends minimum capital requirement for PSP to December

    The Bank of Ghana (BoG) has extended the deadline of meeting the minimum capital requirement for Payment System Providers (PSP) from June to December, this year, after consultation with relevant stakeholders.

    In September 2019, the Central Bank increased the minimum capital requirement for Mobile Money companies by 300 per cent from five million Ghana cedis to GH¢20 million and given nine months to meet the deadline.

    However, Dr Settor Kwabla Amediku, the Director and Head of Payment Systems Department of the Central Bank, speaking at the opening of the maiden Mobile Technology for Development (MT4D) Conference in Accra on Tuesday, announced the extension, which attracted thunderous applause from financial stakeholders at the meeting.

    He said all lenders are to use 50 per cent of their existing assets as part of the paid-up capital and should lodge the rest of the 50 per cent at the Bank of Ghana.

    In addition, the governance framework and infrastructure requirement for Payment System Providers has also been extended to December 2020.

    The Central Bank in a statement issued on 12 September 2019, said the emergence of new payment streams, institutions such as financial technology companies and the general acceptance of electronic money have necessitated the enactment of the Payment Systems and Services Act (Act 987) to provide the legal and regulatory framework for the orderly development of the payment system in the country.

    The BoG, therefore, grouped the PSPs as follows: PSP Electronic Money Issuer-GH¢C20 million, PSP Scheme (Payments cards like Visa and Master Cards)-GH¢8million, PSP Enhance Licence (Payment Platforms like ExpressPay etc)-GH¢2million, PSP Medium Licence (Sub agents for the payment platforms)-GH¢800,000.00 and Standard Licence (Startups fintechs)-No capital required.

    Dr Amediku said the importance of financial inclusion for growth and development of any country cannot be overemphasized because it improved resource allocation, retained price stability and ensured flexibility, competitiveness and accessibility as well as enhancing the poverty alleviation efforts.

    Source: GNA

  • Counting machines help maintain integrity of money business – BoG

    Mr Kennedy Adu, Director of Banking Department at the Bank of Ghana (BoG) on Thursday said improved money counting machines will help maintain integrity in the business of counting money.

    Mr. Adu said there is the need to ensure the integrity of cash transactions in the country and it could only be achieved through usage of improved equipment to facilitate banking activities.

    The BoG Director stated this at the Product Exhibition and Launch of new money counting machines by Krif Ghana, in Accra.

    He said it is important that when you are being paid money, it is the exact amount you are expecting and it is very important that Banks are able to detect counterfeits, shortages, and mixed denominations in a bundle.

    Mr Adu reiterated the need for stakeholders to join forces to chase out those who are involved in counterfeiting; “It is very important that we come out with equipment that will help us maintain the integrity in money business”.

    He noted that highly improved new counting machines would help banks to sort out their currencies smoothly and prevent sanctions from BoG.

    Rev. Kennedy Okusun, the Executive Chairman of Krif Ghana, said the new machines were introduced as a result of difficulties in counting the newly introduced currencies by some customers.

    As a result, they teamed up with manufacturers of the money counting machines, Olympia of Germany and Magner of USA, to introduce new money handling machines of exceptional qualities onto the Ghanaian market.

    He said the Olympia NC-540, Olympia NC-540, Olympia NC-620 had been specifically designed for the Ghanaian currency and would be able to count both the existing and the new cedi notes perfectly without any hitches or flaws.

    “These machines do not make errors. Efficiency and accuracy are their hallmark and these are what we put at the disposal of everyone on the Ghanaian market,” he said

    Source: GNA

  • We havent received our monies despite Receivers promise Customers of S&L

    The Coalition of Affected Savings and Loans Customers (CASLOC) says none of the over three million members of the group has retrieved their locked up cash.

    The Receiver of the collapsed savings and Loans and microfinance indicated on February 25, 2020 that about 1,300 depositors will receive messages to reclaim their monies.

    However in an interview with Citi News, Spokesperson for the CASLOC, Iddrisu Mubarak says none of the members had received a message.

    “CASLOC alone holds more than three million customers. And out of that, we have divided them under regions and every region has its head. So every morning, the regional head goes down, to check on platforms, telegrams and places to find out whether any of them have been paid or has received a text message or something.

    “None of them has received a text message, call or e-mail. None of our members has received anything. We were all telling our customers to exercise patience. We told them it is a process and sometimes might take a longer period so they should all exercise patience so we can give the government ample time,” he aid.

    Customers to be paid on Feb 24

    The Receiver, Eric Nana Nipa had earlier confirmed to Citi News that the customers of the collapsed microfinance, savings and loans and finance houses will from Monday, February 24, begin to access their full locked-up funds.

    This came after President Akufo-Addo, while delivering the 2020 State of the Nation Address in Parliament last week said the affected customers will begin receiving their locked up cash from the said date.

     

     

    Customers to be paid by March

    However, in a new development, the Receiver has assured that all affected depositors will receive their locked up investments by end of March this year after payment processes started on Monday.

    In an interview with Citi Business News, spokesperson for the receiver, Philomena Kuzoe, said since February 24, about 800 people have been notified to retrieve their locked up cash amounting to GH¢200 million from Consolidated Bank Ghana (CBG).

    “So yesterday [Monday], we paid the social institutions made up of the churches, hospitals, schools, welfare associations who have their claims with these defunct microfinance and savings and loans institutions. We are expecting to finish by the end of March,” she said.

     

    Source: citinewsroom 

  • BoG begins market surveillance to sanction entities who charge in dollars

    The Bank of Ghana, BoG says they will sanction institutions and individuals who still charge in foreign currencies by flouting the Foreign Exchange Act. The reaction of the BoG comes after viral images of a shop attendant at Palace HyperMarket on the Spintex road accepting dollars as payment from a customer.

    The team led by the Head of Communications at the BoG, Esi Hammond in market surveillance today visited the Palace HyperMarket and engaged management of the shop.

    According to Esi Hammond, most of the shops are willing to accept dollars for their transactions.

    For this most of them were educated on the fact that it contravenes the law.

    “…met some of our stakeholders to alert them about the need to observe the rules and regulations of the land and particularly with respect to the Foreign Exchange Act which prohibits pricing and dealing in goods in a foreign currency, it has come to our notice that few shops even schools and other institutions charge in dollars, so today we paid a visit to the palace supermarket and we realized that some of them are willing to take dollars in exchange for goods you decided to buy, we engaged them and told them that these contravene the Act.

    She disclosed that the exercise will be carried out most often to make sure institutions comply with the Foreign Exchange Act.

    “We will be going round and it is going to be a continues thing we do every now and then in various institutions.”

    Source: primenewsghana.com

  • Pay us or lose our votes Customers of Gold Coast to govt

    The Coalition of aggrieved customers of Gold Coast Fund Management (GCFM) has threatened to vote against the New Patriotic Party if their locked up investments are not paid.

    The coalition has given the government a three-week ultimatum to either engage them or face another demonstration.

    The Public Relations Officer for the aggrieved customers Charles Nyame addressing the press Monday morning alleged that the Finance Minister Ken Ofori Atta and the Chief Executive of the Securities and Exchange Commission (SEC) Rev Ogbamey Tetteh have withdrawn their investments from the Gold Coast Fund Management.

    According to him, the failure for the government to pay them their investments amounts to stealing from innocent, hardworking Ghanaians.

    “No one prefers free SHS to his personal financial freedom…there is life after free SHS, our wards must continue to the tertiary after free SHS, therefore, we need our money. If Ken Ofori Atta and Rev Ogbamey Tetteh have been able to withdraw all their funds with Gold Coast Fund Management, then what we want to tell them is that we also deserve ours. What is good for the goose is also good for the gander.

    “You cannot steal from innocent citizens…ladies and gentlemen, we consider the action of Ken Ofori Atta and Rev Ogbamey Tetteh as stealing from the poor Ghanaians.”

    Background

    The SEC on November 8, 2019, revoked the operating licences of 53 investment companies including Blackshield Capital Management (formerly Gold Coast Fund Management).

    The company is owned by politician and businessman, Dr Papa Kwesi Nduom.

    The revocation of the licences, according to the regulator, was to protect the integrity of the securities market and investors.

    The Minority in Parliament described the move as politically motivated.

     

    Source: starrfm.com.gh

  • Jomoro Rural Bank exceeds BoG minimum capital requirement

    The Jomoro Rural Bank has exceeded the GHc1,000,000.00 minimum capital requirement as the stated capital of the Bank stood at GHc1,038,268.00 as at the end of December 2018.

    The Bank was able to reach the threshold since the Board members made it compulsory for all Directors, Management and Staff to purchase some fixed amount of shares every month.

    As part of a strategy, the Bank has also proposed that the minimum number of shares for aspiring Directors be pegged at GHc10, 000 with those of their nominators and seconders being GHc4, 000.

    Chairman of the Board of Directors, Professor Cosmos Cobbold announced this when he delivering an annual report and financial statements of the year ended 31st December 2018 during the 22nd Annual General Meeting (AGM) of shareholders of the Bank at Tikobo No.1 in the Western Region.

    Build profile of borrowers BoG direct banks

    He said profit before tax reduced by 42.87% from GHc 601,006.00 in 2017 to GHc343, 323.00 in 2018 largely on account of an increase in requirementBoG provisions from GHc120, 000.00 in 2017 to GHc490, 557.00 in 2018 which marked the end of the legacy bad debt provisions that have been staggered over the years.

    Prof. Cobbold said the Bank recorded moderate growth in its key performance indicators with the exception of profit before and after-tax.

    Total loans disbursed to small and medium scale enterprises, farmers and salaried workers amounted to GHc10, 703,169.00 as compared to GHc9, 044,714.00 in 2017.with 10.92% increase in total income from GHc4, 627.965.00 in 2017 to GHc5, 133,598.42 in 2018.

    Total expenditure also increased from GHc4, 026,959.00 in 2017 to GHc4, 710,275.13 in 2018 showing an increase of 14.5% which resulted in profit before tax decreasing by 42.87% from GHc601, 006.00 in 2017 to GHc343, 323.00 in 2018.

    The Board recommended that dividends be converted to bonus shares for members and urged shareholders to take keen interests in their investments by going to any of their branches to update their records and take statements.

    Prof. Cobbold encouraged existing and potential customers to continue to do business with the Bank and dispel the rumours that Bank of Ghana was going to close down rural Banks adding that the Bank of Ghana and ARB Apex Bank are poised to reposition the rural and community banking sector to enable them better support rural economic development.

    Banks must verify background of employees to curb rising fraud — BoG

    He was highly elated to announce that the Jomoro Rural Bank Ltd. was among the Banks that were given a clean bill of health to sign on to the Ghana Deposit Protection Scheme to protect depositor’s interest in the event of Bank failure.

    On corporate social responsibility, the Bank afforded students from various tertiary institutions in the country, the opportunity to undertake their internship and spent a total amount of GHc6, 197.00 in the areas of education, health, sports and culture.

    Prof.Cobbold said the Board of Directors remained resolute in its commitment to staff development adding that a number of staff members were given the opportunity to pursue approved programmes in various tertiary institutions in the country and also participated fully in internal training programmes as well as training programmes organized by the Association of Rural Banks, the ARB Apex Banka and the Bank of Ghana during the year under review.
    He observed that the year 2019 witnessed an unprecedented revocation of the licences of 347 microfinance companies in the country of which 155 had already ceased operations, 39 microcredit companies/money lenders of which 10 had already ceased operations, 15 savings and loans companies, 8 finance houses and 2 non-bank financial institutions that had already ceased operations with various reasons adduced by the financial regulator.
    Prof.Cobbold said the developments in the micro-finance and savings and loans sub-sector impacted the operations of RCBs in 2019 and has brought to the fore, the need for prudent management of risk and liquidity.

    He said the Board and management of the Jomoro Rural Bank will work collaboratively with the Bank of Ghana, the ARB Apex Bank and auditors of the Bank to ensure that the Bank remains robust and resilient at all times.

    The General Manager of the Bank, Mr.Adormah Mawunyo said the Bank said the Bank was poised to make more profit in the ensuing years to be counted as one of the best financial institutions in the country.

    Source: ghananewsagency.org

  • Republic Bank boss reacts to BoG’s publish salaries of bank executives directive’

    Managing Director of Republic Bank Ghana, Farid Antar, says calls by the Central Bank for commercial banks to publish compensations of executives is a right call.

    This directive by the Bank of Ghana, he adds, is replicated in international banking business.

    In an exclusive interview with Ghanaweb, Farid stated that there is a need for shareholders to ensure that executive compensation is aligned with bank performance to deter bank executives from lavishly spending the resources in their custody.

    Read: How BoG governor landed top IMF job

    “It is actually an international corporate standard. In your publication you are supposed to publish remuneration of the executives. Some groups publish as a group or individuals. I think it is important to publish and we are in support of it.”

    The Bank of Ghana has indicated its resolve to scrutinize compensation package policies of universal banks to ensure that remuneration for key management personnel including Chief Executive Officers are linked to the performance of the banks and quality of its assets.

    The Governor of the Central Bank, Dr Ernest Addison, addressing journalists at the 91st monetary policy press briefing, added that “to ensure transparency, banks will be required to publish Value Added Statements disclosing details of the compensation packages of key management personnel and Boards of Directors separately from total employee compensation”.

    Read: BoG has built strong reserves to stabilise cedi, prices Deputy Governor

    Executive compensation in the banking sector has come under intense scrutiny around the world.

    In Ghana, several critics argue that this was a contributory factor to the challenges which led to the meltdown in the banking sector.

    The move by the Bank of Ghana to get universal banks to link compensation of bank executives with the overall performance of the bank is expected to ensure these executives earn their salaries as it is with all other employees of the bank.

    Source: www.ghanaweb.com

  • How Ghanaians are reacting to BoGs new GHC2 coin, 100, 200 Cedi notes

    Following the release of GHC 2 coin, 100 and 200 Cedi notes into the circulation by the Bank of Ghana, a number of Ghanaians have been reacting to the news.

    The reactions show that Ghanaians have received the news with mixed feelings and as expected, some have received the news with humour while others have done so with anger.

    Read: Bank of Ghana releases GH₵ 2 coin, 100, 200 Cedi notes

    A careful sieve through the reactions, however, suggest that people are generally not happy with the introduction.

    Some of the people reacting to the introduction of the notes are apprehensive, saying should the unfortunate happen for one to lose their wallet containing just three of the 200 cedi notes, the pain will be way too much to bear.

    The Governor of Bank of Ghana, Ernest Addison, announcing the introduction of the new notes said they were meant align well with the needs of the people.

    Read: BoG considering issuing E-Cedi in future

    Meanwhile, the Governor of Bank of Ghana, Ernest Addison, has explained the rational behind the introduction of the new notes, saying they were meant to align well with the needs of the people.

    “A lot of thinking went into the decision to introduce the higher denomination banknotes. The structure of the banknote should align well with the needs of the people who use it for their daily transactions.

    “We need banknotes and coins that are convenient for most people to use, high quality, secure and cost-effective. Accordingly, in March 2017, the Bank of Ghana begun a process of conducting a thorough review of the structure of the currency including on the note/coin boundary and acceptability and use of the individual currency series,” Dr Addison said.

     

    Source: adomonline.com

  • BoG directs fintechs and MoMo operators to acquire license by June 2020

    The Bank of Ghana has said companies engaged in online or digital transactions including Mobile Money Operators and fintechs, have up to June 2020 to acquire their licenses to enable them operate in the electronic payment space.

    The acquisition of the license by these companies is one of the requirements in the Payment Systems and Services, 2019 (987Act).

    Man arrested for attempting to load MOMO account with fake currency

    The Act was passed in March this year, to ensure effective monitoring and regulation of digital transactions following an increase in such services.

    Statistics from the Bank of Ghana shows that while mobile money accounts have increased to 32 million, Bank accounts currently stand at 12 million with a lot of them being inactive.

    “Consumer protection issues have gained prominence in the digital financial service on account of complexity of digital ecosystem. For this reason, regulatory guidance is required for effective consumer protection,” Head of Payment Systems Department at the Bank of Ghana, Dr. Settor Amediku, said at the 23rd National Banking Conference organized by the Chartered Institute of Bankers.

    You need GHC20m to run MoMo firm BoG

    The Bank of Ghana has therefore stepped up the monitoring of digital transactions with the introduction of a database called the Visor.

    The Vizor will enable the BoG monitor real time all electronic transactions of banks.

    Dr. Amediku says they are already in talks with the banks to facilitate the introduction of the database.

    “Vizor will provide end-to-end solution which permits the bank to collect, process, store as well as report on macro and micro prudential data, statistical data or any other data required as part of the supervisory process.”

    Source: citibusinessnews.com

  • BoG boss loses dad

    Governor of the Bank of Ghana, Dr. Ernest Addison’s father, Mr. Attah Joseph Addison  has died, according to reports.  He died aged 97.

    The one-time deputy director and Engineer-in-chief of the Posts and Telecommunications Department is reported to have passed on Saturday, November 16, 2019.

    Inflation will tumble Ernest Addison

    Mr. Joseph Addison was also the father of Mrs. Janet Oklah, Accra, Mrs. Marian Akiwumi, USA, Lawyer Philip Addison, Dr. Ernest Addison, among others.

    Funeral arrangement will be announced later.

    Joseph Atta Addison was 97

    Source: 3news.com

  • BoG receives $71.5m in bids for third forward forex auction

    The Bank of Ghana (BoG) received $71.5 billion in bids from dealers, businesses and banks that participated in its third forex forward sale.

    This means the Central Bank got more in bids than the $25 million that it was willing to sell in its forward forex sale.

    Based on the auction results, 49 bids came from banks and dealers that were looking for $47 million from the Bank of Ghana in seven days.

    However, the Bank of Ghana is prepared to sell $10.5 million within a range of GH¢5. 37 and GH¢5.38 by accepting 10 bids. 30 Bids came from dealers who were looking for $18.5 million in 15 days, but the regulator was prepared to sell $9 million at a price of not more than GH¢5.43.

    Dealers and banks that wanted dollars in 30 days, submitted bids worth GH¢5 million at a price of GH¢5.42.

    Read:BoG building GHC1bn buffer against election 2020 Ernest Addison

    For this particular auction, the Bank of Ghana accepted all the bids in terms of price and the amount that they are looking for. The central bank also accepted all the bids coming from dealers that wanted $500, 000 in 45 days.

    From the results, it was clear that there is more market players wanted more dollars, however, Bank of Ghana was able to supply a limited amount.

    The next auction would be done on 26 November 2019 and December 10 2016. The Bank of Ghana is looking at selling $125 million at the end of the auction results by the end of this year.

    Structure of the auction

    The Bank of Ghana, the Foreign Exchange Forward rate Auction is limited to 7-day, 15-day, 30-day, 45-day, 60-day and 75-day tenors starting on October 01, 2019 to December 2019.

    The Central Bank also said, in addition to the auction guidelines, all Authorized Foreign Exchange Dealer Banks shall also comply with the provisions of the Code of Conduct for the Interbank Foreign Exchange market in Ghana.

    Read:BoG to shore up reserves with $1bn Addison

    Bank of Ghana on the forward auction

    Speaking to JoyBusiness, the Head of Financial Markets at the Bank of Ghana, Stephen Opata noted that the initiative would help businesses plan for their forex needs.

    He said, “It creates more certainty for clients for future FX needs and alleviates unnecessary pressure on the spot FX market”.

    Mr Opata indicated that it is another window to provide foreign exchange to bank clients based on verified commitments.

    He added that this move is an ongoing reform to streamline operations of the foreign exchange market.

    According to the Bank of Ghana, it would issue a one week notice, before the sale of these forexes, for businesses and commercial banks.

    Read:Address issue of high interest rates Akufo-Addo to BoG

    This would also allow businesses and banks to plan properly for their forex needs; a development that would help reduce pressure on the spot market.

    Mr Opata added that after the first forward auction on October 1, the regulator plans to come out with a calendar for further sales.

    Source: Myjoyonline.com

  • BoG deepens public understanding on banks closure

    The method deployed by the Bank of Ghana (BoG) in the recent clean-up exercise was largely dependent on the root cause of what accounted for such banks to become insolvent, First Deputy Governor of the BoG, Dr. Maxwel Opoku-Afari has said.

    Reports indicate that the BoG pumped in Ghc20 million daily to enable cheques of such banks to go through clearing, as their capital adequacy ratio was in negative and thus had to depend on life support. The capital injection was necessary as the central bank had to take pragmatic measures to ensure smooth running of the entire clearing and payment system.

    Read: BoG maintains Monetary Policy Rate at 16% again

    Instructively, the central bank has maintained that such occurrence prior to the revocation of their operational licenses defeat the argument and sentiments expressed by the public on the failure of BoG to rather institute effective and convenient measures to bail up such banks.

    Some even noted that to ensure financial inclusion in the sector and protect businesses, the central bank had no option than to give monies directly to the banks to make them somewhat liquid rather than revoking their licenses.

    Answering a question based on a similar sentiment expressed by one of the participants during the Ghana Industrial Summit and Exhibition (GISE) 2019 held in Accra last week, Dr. Opoku-Afari noted that the collapsed banks had their licenses revoked because they were operating fraudulently coupled with poor risk management.

    “Some institutions take depositors money and give it to related party institutions without adhering to the laid down rules. There are rules as to how you can give loans to related businesses.

    But if you break those rules and then syphon monies to these related institutions, do you think that to ensure financial inclusion, the BoG should pump more money into those banks? The best thing to do is to revoke their license to prevent it from spilling over to affect other strong institutions”, he queried and explained.

    Read: BoG to sanction institutions pricing in dollars

    Instructively, the net effect of the clean up exercise was necessary in the sense that it prevented disorderly collapse of the banking sector, the central bank maintains.

    So far, out of a total Ghc10 billion spent to protect depositors funds from the collapse banks, the central bank has just managed to retrieve about Ghc849 million, representing a paltry 8.4 percent.

    The gathering was aimed at supporting industrialization and export competitiveness on a sound financial ecosystem organized by the Association of Ghana Industries.

    Source: goldstreetbusiness.com