ghananlpcommunity/ghana-gov-speeches-sentences huggingface dataset:
The implementation of these would ensure that RCBs remain strong, and are able to deliver effective finan cial intermediation leading to financial inclusiveness, social transformation and poverty alleviation in the rural communities.
To conclude, Mr.
Chairman, Distinguished Guests, Ladies and Gentlemen, developing an inclusive financial system to provide equal opportunities to all in accessing financial services at affordable costs should provide the needed boost for accelerated growth along with a reduction in income inequality and poverty.
RCBs, as implementing partners in deepening financial inclusion, need to be innovative and develop products and services that meet the needs of the un-banked and under- 10 served within their catchment areas.
RCBs must also work to improve overall corporate governance performance and operational efficiency.
These, I believe, will allow more people to access the formal financial services sector which can unlock the economic potential of the rural areas.
1 THE 2019 IADI AFRICA REGIONAL COMMITTEE TECHNICAL ASSISTANCE WORKSHOP OPENING ADDRESS BY DR.
ERNEST ADDISON GOVERNOR, BANK OF GHANA MARRIOT HOTEL, AIRPORT CITY, ACCRA, GHANA NOVEMBER 18, 2019 2 His Excellency, Vice President of the Republic of Ghana, Honourable Minister for Finance, Honourable Ministers of State, Members of the Diplomatic Corps, Deputy Governors, Bank of Ghana, GDPC Board of Directors, Secretary General, International association of Deposit insurers (IADI), Representatives of IADI Member Institutions Representatives of German Development Fund, the Kfw, Heads of Financial Institutions, Members of the Media Fraternity, All Protocols Observed, Distinguished Guests, Ladies and Gentlemen, 1.
It is with great pleasure to welcome you all to the 2019 IADI Africa Regional Committee Technical Assistance Workshop .
I really consider it a great honour to participate in this important gathering of financial safety-net guardians.
As a statutory institution tasked with the responsibility of formulating and implementing monetary policy to wards ensuring price stability, guaranteeing financial stability and promoting economic growth, the Bank of Ghana , should, and as matter of top priority take a keen 3 interest in matters bordering on deposit insurance.
As a matter of urgency and to ensure that in future, cost of resolution of banks do not spill over into the space of fiscal management and create macroeconomic imbalances, the Bank of Ghana recognizes how important a deposit protection scheme can immensely contribute to the stability of the entire macroeconomic architecture, including on financial stability.
There is deep recognition all over the world that financial stability is a necessary precondition for promoting sustainable economic growth and ensuring the efficient transmission of monetary policy actions.
This explains why Central Banks are entrusted with the authority to regulate banks and specialized deposit -taking institutions in order to protect public savings, prevent build -up of toxic assets which could have detrimental effects on the economy, prevent the adverse consequences of bank failures with the ultimate goal of ensuring a healthy financial system.
The reality however, is that , in spite of the strict regulatory and supervisory regime of the Central Bank, banks and specialized deposit - taking institutions could still fail due to poor management of the economy, poor lending practices, concentrations of credit, poor risk management practices, speculative runs on banks, non-bank sector activities with high degree of connectedness to the banking sector and other factors beyond the control of regulators.
As pointed out earlier, the absence of a deposit insurance scheme in the midst of bank failures could impose enormous strain on fiscal policy management.
In the absence of an effective scheme, as has been the case in Ghana until now, the failure of banks and speciali zed deposit- taking institutions would suddenly place an enormous burden on tax payers’, as the Government would be compelled to finance pay-outs to depositors in an attempt to forestall the potential for a bank -run and help contain threats to financial stability.
To curtail the potential adverse effects of bank failures on state resources, and to enhance public confidence in the financial system, the established deposit protection schemes to protect depositors from losses in the event of the failure of a bank or specialized deposit -taking institution has become the norm .
As a matter of fact, at the last count, 145 deposit protection schemes existed around the wor ld, with 92 of them being members of the International Association of Deposit Insurers (IADI); and I am sure many of the membership of the IADI are represented here today at this workshop.
Your Excellency, Distinguished Guests, Ladies and Gentlemen, Ghana does not wish to be left behind in this global drive to develop deposit insurance schemes to maintain financial stability and economic growth .
Ghana’s Deposit Insurance scheme is long overdue.
It is for this reason that the Ghana Deposit Protection Corporation (GDPC) was established by the Ghana Deposit Protection Act, 2016, (Act 931, as 5 amended) to protect small depo sitors against losses i n the event of the materialization of an insured financial sector shock.
The establishment of GDPC , therefore, comes as a big relief and a welcome addition to Ghana’s financial safety net apparatus, as it puts the nation in a state of readiness to better manage the failure of banks and deposit-taking financial institutions in the future.
Indeed, the importance of deposit protection to financial stability cannot be overemphasized, and this is clearly illustrated by the theme of this workshop: “Deposit Protection – A Catalyst for Financial Stability.”
Your Excellency, Ladies and Gentlemen, the IADI, in collaboration with the Ghana Deposit Protection Corporation and Bank of Ghana, has put together this important workshop to facilitate a close interaction among experts working in different areas of regulation and financial stability .
This will allow for the sharing of regional and global experiences on effective deposit protection scheme s and to ensure that best practices are incorporated in current behaviour to foster trust and enhance confidence in the financial sector.
I hope that this workshop will offer participants the opportunity to learn more about the roles and functions of deposit protection schemes and the relevant emerging trends in this field.
Hopefully, young deposit protection schemes such as the GDPC will learn a lot from more experienced deposit insurers represented at this workshop, especially as 6 the role of deposit insurers in today’s financial environment continues to evolve and advance.
This workshop should also provide a useful platform for discussions on the enormous benefits associated with effective collaboration between Central Banks and Deposit Protection Schemes.
It is expected that in the course of th ese discussions, participants will explore ways of fostering stronger collaboration with their respective Central Banks in order to share experiences.
Ladies and Gentlemen, it is heartening to know that the programme for this workshop is revolving around issues of contingency planning and crisis management and how the role of Deposit Insurers can play effectively in a concerted manner in times of bank failures and resolution actions.
Hopefully, participants will also be able to delve into issues relevant for effective crisis management such as simulating scenarios relevant to resolutions, communication, legislation and relationship management.
Such knowledge is of immense importance to financial safety net players as it enhances their capacity to manage the materialization of insured events and other occurrences that threaten the stability of the financial system.
In conclusion, I would like to commend the leadership of IADI for collaborating with GDPC and the Bank of Ghana to organise this workshop.
It is my hope that over the next f ew days, the workshop will 7 provide all participants with a memorable learning and networking experience.
Once again, let me take this opportunity to warmly welcome all participants to Ghana; Akwaaba!
I wish you all fruitful d eliberations.
I hope some of you will find time after the conference to visit some of our nearby tourist attractions.
Launch of Guidelines for Repurchase Agreements Opening Remarks Dr.
Ernest Addison Governor, Bank of Ghana Kempinski Gold Coast City Hotel, Accra November 12, 2019 1 H.E., Vice President of the Republic of Ghana, Alhaiji Dr.
Mahamadu Bawumia, Hon.
Minister for Finance, Hon.
Deputy Ministers for Finance, Deputy Governors of the Bank of Ghana, CEOs and representatives of banks, Representatives of Frontclear, Representatives from the International Monetary Fund, Members of the Governing Council of the Ghana Fixed Income Market (GFIM), Investors, Distinguished Guests, Good morning to you all.
Good morning and it is a pleasure to join you at the official launch of the Global Master Repurchase Agreement (GMRA) -based Guidelines for repo trading on the Ghanaian market and the Ghana Fixed Income Market (GFIM).
This is once again another milestone as we continuously work to deepen Ghana’s capital market.
I will briefly share a few remarks on this initiative and the expected impact on the financial markets.
The purpose of GMRA-based repo reforms and GFIM 2.
Distinguished Ladies and Gentlemen, a well -functioning repo market contributes to the efficient allocation of capital in the real economy by 2 supporting liquidity in other markets.
Repo markets offer several other benefits such as facilitating the flow of cash and securities in financial markets, providing low -risk options for cash investment thereby supporting c ash-market efficiency and liquidity, transforming collateral and facilitating hedging of risks, and lastly, fostering price discovery by facilitating primary market activity.
A key feature of GMRA -based repo is the transfer of title to collateral securities from the seller to the buyer.
The title transfer under GMRA thereby 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 at maturity.
Ult imately, these dealings should boost secondary market trading and price discovery of bonds and offer a cheaper and increased source of short -term funding.
When properly structured to preserve its risk mitigating features, repos become effective tools for e ffective monetary policy transmission and serves 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 serve as effective instruments for the conduct of monetary policy market operations by the central bank.
As at September 2019, the stock of repos and reverse repos outstanding between the Bank of Ghana and universal banks was GH¢1.9 billion, while the volume of ov ernight interbank trading among universal banks amounted to GH¢27 billion in the third 3 quarter of 2019.
These trends show the huge potential of repos as reliable and cost -effective source for short -term funding for market participants.
It is against this background that the Bank of Ghana, together with other stakeholders, have decided to introduce a GRMA -based repo market in Ghana.
What the GMRA-based guidelines seeks to achieve 6.
Ladies and Gentlemen, t he guidelines being launched today is based on the standard 2011 Global Master Repurchase Agreement.
All the directives in the guidelines are binding on eligible counterparties and will serve as the regulatory guidance for repo trading going forward.
The k ey features of the GMRA-based repo guidelines include the absolute transfer of title to the buyer, an expanded list of eligible instruments which would promote a more liquid repo market, an expanded eligible participation to cover not only banks but SDIs, securities dealers, corporates and high net worth individuals, and the requirement for margin maintenance requirements including features such as re -pricing, substitution of securities, and daily margining of collateral and a margin notice deadline which serves to reduce the credit and liquidity risks associated with the use of repos.
To provide further guidance, a Ghana country annex has been designed which specifies the supplementary terms or conditions to the GMRA to 4 cover sell/back and forward transac tions and made amendments to paragraph 2, 5, 10, 17, 19, and 21 to the GMRA.
There is also a Ghana Agency annex to cover transactions where at least one party is acting on an agency basis.
Going forward, an elaborate training program to ensure that key ma rket players and stakeholders are adequately trained on aspects of GMRA -based repos will be implemented.
Let me urge all invited stakeholders to keenly participate in these training workshops to ensure effective implementation.
Ladies and Gentlemen, as we launch the GMRA-based guidelines to serve as regulatory guidance for the conduct of repos trading in Ghana, let me announce that Front Clear has offered to commission a Legal & Regulatory Review of the GMRA and ISDA enforceability in Ghana to secure ICMA and ISDA engagement and views towards a clean opinion for the country.
This is a key milestone and we are grateful for their assistance.
The Bank of Ghana will also issue a notice to clarify the eligibility of netting arrangements under the current Banks and Specialized Deposit Taking Institutions Act (BSDTI Act).
The effective date to begin trading this GMRA -based repo guidelines shall be April 2, 2020.
To conclude, let me thank the Vice-President for his continued support to on-going reforms as we seek to further improve the depth of Ghana’s financial sector.
Also, I would like to thank Front Clear who has partnered with us to deliver the training programs, and other stakeholders including 5 ICMA for their immense technical support on this project.
I als o thank the members of the GFIM governing council for their commitment towards the delivery of these guidelines.
BANK OF GHANA PRESS RELEASE BANK OF GHANA STAFF OBTAINS TORONTO CENTRE ESSAY COMPETITION 2019 AWARD A staff of the Payment Systems Department of Bank of Ghana, Miss Enam Yawa Kodade, has won an award following the submission of an essay as part of Toronto Centre, Canada’s maiden essay competition for financial sector supervisors and regulators from Official Development Assistance (ODA) recipient countries.
Miss Kodade’s entry won the second place.
Toronto Centre, Canada in its maiden 2019 essay competition requested financial supervisors and regulators to submit an essay not exc eeding 2000 words on the topic , “What role can financial supervisors and regulators play in promoting gender equality and the economic empowerment of women as they relate to the provision of savings, payments, and other financial services?”
Miss Kodade was awarded a scholarship worth USD 3000 (three thousand dollars ) to be used towards one of Toronto Centre’s 2020 Intern ational Leadership Programmes.
Her essay was published in a Toronto Centre (TC) Note, which was also promoted throughout the Centre’s social media channels and websites.
Toronto Centre indicated that it had received many high quality submissions and selected four winners comprising a winning essay combined with excerpts from three essays that were exceptional and notable.
The announced winners are as follows: 1.
Dr Olufemi Oladejo: Senior Bank Examiner – Central Bank of Nigeria (overall winning essay) 2.
Miss Enam Yawa Kodade: Bank of Ghana (Second Awardee) 3.
Sok Heng Lay: National Bank of Cambodia (Third Awardee) 4.
Miss Andrea Fernandez: Superintendence of Banking, Insurance and Private Pension Fund Administrators (SBS), Peru (Fourth Awardee) Details of the official announcement, a copy of the TC Note, and the brief profile of the winning candidates are available on the website of the Bank of Ghana.
Toronto Centre, Canada is supported by several development agencies including the World Bank and the IMF to deliver capacity-building programmes in banking, insurance, securities, pensions, microfinance, and micro insurance supervision.
The role of the institution also includes promotion of financial stability, access to finance and offering of p ractical training to financial sector regulators and supervisors, particularly in emerging markets.
End 8th November, 2019
1 W H A T R O L E C A N F I N A N C I A L S U P E R V I S O R S A N D R E G U L A T O R S P L A Y I N P R O M O T I N G G E N D E R E Q U A L I T Y A N D T H E E C O N O M I C E M P O W E R M E N T O F W O M E N ?
S E P T E M B E R 2 0 1 9 2 W H A T R O L E C A N F I N A N C I A L S U P E R V I S O R S A N D R E G U L A T O R S P L A Y I N P R O M O T I N G G E N D E R E Q U A L I T Y A N D T H E E C O N O M I C E M P O W E R M E N T O F W O M E N ?
TABLE OF CONTENTS I. Introduction II.
Essay by Dr.
Olufemi F. Oladejo A. Introduction B. Obstacles to women’s financial inclusion C. Roles of financial supervisors and regulators D. Conclusion and recommendations III.
Annex 1: A perspective from Ghana by Enam Yawa Kodade IV.
Annex 2: A perspective from Cambodia by Sok Heng Lay V. Annex 3: Financial Inclusion Index by Andrea Fernandez Tinoco VI.
References Copyright © Toronto Centre.
Toronto Centre permits you to download, print, and use the content of this TC Note provided that: (i) such usage is not for any commercial purpose; (ii) you do not modify the content of this material; and (iii) you clearly and directly cite the content as belonging to Toronto Centre.
Except as provided above, the contents of this TC Note may not be transmitted, transcribed, reproduced, stored or translated into any other form without the prior written permission of Toronto Centre.
The information in this TC Note has been summarized and should not be regarded as complete or accurate in every detail.
3 W H A T R O L E C A N F I N A N C I A L S U P E R V I S O R S A N D R E G U L A T O R S P L A Y I N P R O M O T I N G G E N D E R E Q U A L I T Y A N D T H E E C O N O M I C E M P O W E R M E N T O F W O M E N ?
Introduction This sum mer, Toronto Centre accepted submissions for an essay contest in which participants were asked to make an argument and action plan for the role that financial supervisors and regulators can play in promoting gender equality and the economic empowerment of women.
The competition received a large number of high -quality entries from our international network.
We are pleased to announce the winner of this contest as Dr.
Olufemi F. Oladejo of the Central Bank of Nigeria, and to publish his submission as a Toronto Centre Note1.
Reflecting the high standards of the entries, we have also included here three annexes from other submitted essays – two country-specific examples from Enam Yawa Kodade of the Bank of Ghana and Sok Heng Lay of the National Bank of Cambodia , and an index of financial inclusion calculated by Andrea Fernandez Tinoco of the Superintendence of Banks, Insurance Companies, and Private Pension Funds, Peru.
Toronto Centre commends all those who submitted an essay and congratulates these four outstanding writers on their accomplished works.
1 Toronto Centre has edited each published submission for length and consistency.
4 Essay by Dr.
Olufemi F. Oladejo A. Introduction2 The need for greater involvement of financial supervisors and regulators in promoting gender equality and the economic empowerment of women in relation to the provision of savings, payments, credit, insurance and other financial services has become a subject of discourse among financial supervisors and other stakeholders in the financial sector across the globe.
There are various debates and literature on promoting gender equality and the economic empowerment of women.
However, not many of the studies have considered the role of financial supervisors and regulators in promoting gender equality and the economic empowerment of women.
The importance of increasing women’s financial inclusion is driven by the potential overall benefit to the economy at large – the involvement of women in the financial system brings substantial benefits in terms of economic growth, greater equality and societal comfort.
One study (International Finance Corporation, 2017) shows that greater participation of women in economic activities would result in gains in GDP of between 2 and 3.5 percent.
Gender equality and economic empowerment of women are part of the driving tools for economic development around the world.
Despite this, there is still a wide gap between men and women in relation to financial inclusion, most especially in developing economies.
The Global Findex database (World Bank, 2017) reveals that 1.2 billion adults have opened an account since 2011, including 515 million since 2014.
The database also shows that between the years 2014 and 2017, the proportion of adults who ha d some form of an account with a financial institution or a mobile money operator grew universally from 62 percent to 69 percent.
In developing economies, this percentage grew from 54 percent to 63 percent.
However, women in developing economies remain 9 percentage points less likely to have a bank account than men are.2 This gender inequality between men and women could be attributable to many factors that have favored men more than women.
B. Obstacles to women’s financial inclusion Financial illiteracy Women across the globe experience serious challenges relating to basic financial knowledge.
A study conducted by Bucher-Koenen et al.
(2016) on levels of financial literacy among women in the United States, Germany , and the Netherlands revealed a persistent gender gap in financial literacy, which negatively affects women’s basic financial knowledge.
Inadequate access to credit facilities Women are prominent in small and medium scale enterprises globally and many of them are unable to access credit facilities from financial institutions, and this discourages many of them 2 The main text of this Note was written by Olufemi F Oladejo of the Central Bank of Nigeria.
2 Annex 3, prepared by Andrea Fernandez Tinoco, provides a measure of financial inclusion and shows how this differs both across countries and by gender within each country.
5 from dealing with financial service providers.
It is estimated that globally over 70 percent of women-led SMEs are either financially unserved or underserved (Alliance for Financial Inclusion, 2016).
According to research conducted by Fuentes (2018), women in Latin America, most especially poor women in marginalized areas, have negligible access to bank accounts, credit, savings mechanisms, digital payment methods, investment opportun ities, and insurance.
Emefiele (2018) noted that the inability of SMEs to access finance has been a major factor hindering their contributions to financial inclusion and economic growth.
Salawu, Adegbie, and Oladejo (2018) also pointed out that the banking system does not provide adequate support to startup small businesses and in particular to finance the expansion of SMEs.
Furthermore, biases against female customers by loan or credit officers also make it difficult for women to access credit facilities.
All these issues affect the financial inclusion of women who run SMEs.
Information asymmetry and the absence of social networks Robust networks motivate women in business worldwide to take calculated risks to expand their businesses.
They offer essential market information, logistical backing, and connections to suppliers, investors, financing, and technology.
However, evidence from literature reveals that women, in most cases, do not have sufficient access to networks, as cultural norms often restrict them and prevent them from using public transportation or from interacting with men other than close relatives.
Thus, they are not able to obtain the resources and information needed by them to succeed.
Banks’ risk aversion and the absence of gender-disaggregated data Most women are low-income earners, but many women are major players in small and medium scale businesses across the globe.