Ghana: Banking Law 1989 (PNDCL 225)

This document is the Banking Law in Ghana. The law is structured into six parts with 2 schedules that detail some terms mentioned in the law. The following are the parts with a brief description of their contents:

Part I - Licensing of banks:All clauses pertaining to licensing of banks are mentioned in this part. This includes:

• Prerequisites for an application;
• Qualification of the entity applying for the license;
• Clauses that govern the issue and revocation of the license.

Part II - Statutory obligation of banks:

• Criteria for opening and closing of banks;
• Reporting of regulations and any alterations in them;
• Maintenance of deposits from the public, capital adequacy and reserve fund;
• Declaration and payment of dividends;
• Criteria for loans and advances;
• Areas of banking activities;
• Obligations to the Bank of Ghana (BOG).

Part III - Special functions of the BOG:

• Prescription of the liquid assets of each bank and liabilities in case of non accordance;
• Transparency of banks on loan and other credit facilities vis-a-vis the BOG;
• Control of banking business by the BOG - policy guidelines and rules;
• Annual report by the BOG on respective banks to the Secretary.

Parts IV, V and VI deal with the appointments, duties and powers of the Head of Banking Supervision, accounts and audit of banks, and miscellaneous and supplemental provisions for the Bank Director, officer and other employees.

The law concludes with the schedules (for section 8 and section 39 of the Law), which elucidate capital adequacy (primary and secondary capital structuring) and matters to be included in the long form audit report.