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The
Bank
of
Ghana
(BoG)
has
reminded
the
general
public
that
persons
who
have
been
directly
implicated
in
the
2017-2019
Financial
Sector
clean-up,
and
all
previous
directors
of
failed
banks
and
Specialised
Deposit-taking
Institutions
(SDIs)
since
the
enactment
of
Banks
and
Specialised
DepositTaking
Institutions
Act,
2016
(Act
930)
do
not
qualify
to
hold
key
positions
under
the
fit
and
proper
persons
criteria.
The
central
bank
gad
explained
that
poor
Corporate
Governance
contributed
significantly
to
excessive
and
imprudent
risk-taking
in
the
financial
sector,
which
led
to
the
failure
of
some
Regulated
Financial
Institutions
(RFIs)
licensed
by
the
BoG,
consequently
necessitating
the
2017-2019
banking
sector
clean-up.
In
order
to
sustain
the
gains
made
from
the
clean-up,
the
BoG
issued
the
Corporate
Governance
Directive
in
2018
as
well
as
the
Fit
and
Proper
Persons
Directive
in
2019
to
strengthen
and
embed
sound
corporate
governance
practices
in
RFIs
and
to
entrench
the
gatekeeping
role
of
the
BOG
in
the
financial
sector.
To
enhance
governance
disclosure
practices
by
RFIs,
the
BOG
further
issued
the
Corporate
Governance
Disclosure
Directive
in
2022
to
convey
its
regulatory
expectations
under
Pillar
III
of
the
Basel
Capital
Accord,
relating
to
regulatory
and
public
disclosures.
Significant
Shareholder,
Directors
and
Key
Management
Personnel
in
their
oversight
and
management
functions
shall
at
all
times
be
of
good
repute
and
possess
sufficient
knowledge,
skills
and
experience
to
perform
their
duties
in
line
with
the
dictates
of
the
Fit
and
Proper
Persons
Directive,
2019.
Among
others,
the
Fit
and
Proper
Standards
considers
whether
a
person
has
been
a
director
of,
or
directly
involved
in
the
management
of,
any
company
or
institution:
a.
which
had
its
licence
revoked;
b.
or
is
being
or
has
been
wound
up
by
a
court
of
competent
jurisdiction
or
other
authority
competent
to
do
so
within
or
outside
Ghana;
c.
has
gone
into
receivership,
insolvency
or
involuntary
liquidation.
“In
order
to
further
promote
the
safety
and
soundness
of
RFIs,
the
BOG
is
by
this
Notice
bringing
to
the
attention
of
RFIs,
their
obligation
under
the
Banks
and
Specialised
Deposit-Taking
Institutions
Act,
2016
(Act
930)
and
the
Fit
and
Proper
Persons
Directive,
2019
to
ensure
the
continuous
fitness
and
propriety
of
Significant
Shareholders,
and
Persons,
serving
as
Directors
and
Key
Management
Personnel
of
RFIs.
“The
BOG
reminds
the
public
that
persons
who
have
been
directly
implicated
in
the
2017-2019
Financial
Sector
clean-up,
and
all
previous
directors
of
failed
banks
and
SDIs
since
the
enactment
of
Banks
and
Specialised
DepositTaking
Institution
Act,
2016
(Act
930)
do
not
qualify
to
hold
key
positions
under
the
fit
and
proper
persons
criteria.
“Banks
and
Specialised
Deposit-taking
Institutions
(SDI)
and
the
General
Public
are
to
note
the
above
for
their
information,”
a
statement
Sandra
Thompson,
Secretary
to
the
BoG
said
on
Thursday,
July
11.
