ghananlpcommunity/ghana-gov-speeches-sentences huggingface dataset:
The identification system is based on biometric technology and would provide continuous verification access to banks at all times.
The system is expected to also address incidence of identity fraud at point of transactions and serve as reliable system for profiling the underserved and the unbanked.
Fostering a Digital and Property Address System : A Digital and Property Address System, was put in place by Government to allocate addresses to properties through the use of Global Positioning System (GPS) technology.
The address system seeks to improve business opera tions and lessen the burden involved in identifying customer location.
A national address registry is expected to be generated to enable financial service providers to validate home and property addresses of customers to facilitate financial service delivery.
Ensuring Mobile Money Interoperability : As part of the Bank’s policy to transform the payment ecosystem, an interoperability project was implemented to boost the efficiency, accessibility and competition within the mobile money space.
Under the project, disparate mobile money platforms were linked to each other through central switch to facilitate funds transfer across mobile money networks.
The system is also expected to integrate with interbank payment systems infrastructure to create an integrated and interoperable digital retail payments ecosystem, and facilitate seamless funds transfer across payment systems.
The project has the potential to stimulate uptake in mobile financial services and promote financial inclusion.
The points raised above dem onstrate that the ABSA Financial Markets Index for which we are launching the fourth edition has become a major reference point for economic policy makers and financial sector leaders in Africa.
This is important in our quest to improve upon the efficienc y of the African financial markets to attract lower funding sources to better the economic life of our people.
I urge ABSA to continue to challenge policy makers using this index, other innovative tools and a forum such as this.
On behalf of the Bank of Ghana, I wish to congratulate ABSA for successfully launching the fourth edition of the African Financial Markets Index today and to thank you all for the good audience.
To conclude let me state clearly that the potential to expand our economies through structural reforms and initiatives should form the cornerstone of all policies.
Ghana’s economy is going through a structural transformation and these initiated policies are supporting the move in that direction.
As a continent, p olicies should be focussed on how to develop a vibrant capital market to support growth, how to benchmark our internal regulation against global standards to help improve standards, overcoming regional integration challenges to support growth, and leveraging on new technology and d ata sharing to improve efficiency and innovation.
Let us ponder critically over these issues as we go through our deliberations.
I look forward to fruitful engagements and that the key takeaways will help inform policies going forward.
PRESS RELEASE BANK OF GHANA AND THE GHANA FIXED INCOME MARKET COMMITTEE LAUNCH REPO MARKET GUIDELINES 17 October 2019 – The Bank of Ghana (BOG) together with the Ghana Fixed Income Market (GFIM) Committee has today launched the ‘Guidelines for Repurchase Agreements’ in Ghana.
This achievement is one of many initiatives to accelerate the country’s money market development and was presented by a high -ranking Ghanaian delegation to the World Bank/IMF Annual Meetings 2019 in Washington DC.
A well-functioning money market underpins liquidity in the secondary market for government securities, lowering the risk-free yield curve.
Repurchase transactions, also known as repos, are a key money market instrument.
With the risk -free curve as a reliable and transparent pricing reference for all other issuers of debt, funding costs decline for market stakeholders, including the government.
All the above foster and help stabilize economic growth.
“Repo markets facilitate the flow o f cash and securities in financial markets.
A well -functioning repo market contributes to the efficient allocation of capital in the real economy by supporting liquidity in other markets.
Repo markets serve several benefits; they provide a low -risk option for cash investment, transform collateral, support cash -market efficiency and liquidity, facilitate the hedging of risk and enable investors to monetize liquid assets” - Dr.
Ernest Addison, Governor of the Bank of Ghana The accessibility and efficiency o f African money markets can be greatly improved through the strengthening of the legal and regulatory environment that underpins repo transactions , specifically, the enforceability of standard financial markets master agreements.
At the start of 2018 and following a Regulators’ Roundtable by Frontclear and the International Capital Markets Association ( ICMA) on repo and Global Master Repurchase Agreement (GMRA) enforceability in Accra, the Bank of Ghana (BOG) and the wider GFIM Committee, embarked on an effort to address GMRA enforceability.
“The adoption of these guidelines , I believe , will not only ensure legal certainty and enforceability but will also impr ove market transparency, liquidity and participation.
Looking ahead, we hope to develop our repo market to grow beyond the borders of Ghana to improve intra-African trade.
It is my firm belief we would one day be here again for another launch but this time for the whole of the African continent.
”- Dr.
Maxwell Opoku Afari, Chairman of the GFIM The Ghana Fixed Income Market (GFIM) is the secondary market for all fixed income securities.
Fixed income securities of the Government of Ghana (including treasury bills, notes and bonds) and Bank of Ghana bills are automatically admitted and traded on the GFIM upon issuance.
GFIM, in collaboration with Bloomberg , has launched the Bloomberg E -Bond trading and market surveillance system, a new electronic trading system for Ghanaian government bonds.
The result – Ghana Repo Market Guidelines – has been launched today by Ghanaian dignitaries attending the WB/IMF Annual Meetings, including: Dr.
Ernest Addison, Governor of the Bank of Ghana Honourable Charles Adu-Boahen, Deputy Minister of Finance Dr.
Maxwell Opoku-Afari, Chairman of the GFIM “We are encouraged by the publication of these guidelines referencing the Globa l Master Repurchase Agreement, the principal master agreement for cross -border repos globally, as well as for many domestic repo markets around the world.
We see this as a positive step in the development of the repo market in Ghana.”
Martin Scheck, Chief Executive of ICMA END For media inquiries, contact: Esi Hammond, Bank of Ghana | esi.hammond@bog.gov.gh
GOVERNOR’S SPEECH FOR THE SOFT LAUNCH OF GUIDELINES FOR REPURCHASE AGREEMENTS IN GHANA: OCTOBER 17, 2019, WASHINGTON, DC 1.
Fellow Governors, Ministers of Finance, C EO and r epresentatives from the International Capital Markets Association (ICMA), CEO and 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.
It is my pleasure to be here with you this morning to officially launch the Guidelines for Repurchase Agreement s for the Ghanaian market and to share with you my thoughts on this event and its expected impact on the financial markets in Ghana.
Repo markets facilitate the flow of cash and securities in financial markets.
Repo markets serve several benefits; they provide a low -risk option for cash investment, they transform collateral, support cash -market efficiency and liquidity, facilitate the hedging of risk and enable investors to monetize liquid assets.
Chairman, in Ghana, repos and reverse repos serve as effective instruments for the conduct of monetary policy market operations by the central bank.
As at August of 2019, the stock of repos and reverse repos outstanding between the Bank of Ghana and the commercial banks in Ghana was equivalent to US$350 million.
When properly structured , repos are effective vehicles for the monetary policy transmission process and can serve as a vehicle through which the central bank can act more swiftly as a lender of last resort during periods of market stress.
Repo markets also foster price discovery by facilitating primary market activity .
But we also know that the excessive use of repos can facilitate the build -up of leverage and encourage the over -reliance on short-term funding.
It is against this background that we are launching a GRMA -based repo market in Ghana that promotes legal certainty on the enforceability of netting arrangements.
It is our conviction that this will provide a clear legal framework and an enhance d credit risk management for participants in this market and translate to a dee per and more liquid primary and secondary local currency bond markets.
The guidelines that we launch today is based on the standard 2011 Global Master Rep urchase Agreement (GMRA) .
All the directives contained in these guidelines are binding on eligible counterparties and serve as regulatory guidance for repo activity trading in Ghana .
The introduction of the Guidelines is expected to deepen the financial markets in Ghana through the promotion of a more vibrant and liquid secondary bonds market.
A key feature of adopting the GMRA is the transfer of title to collateral securities from the seller to the buyer.
The title transfer under GMRA will reduce 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 .
This will boost secondary trading and price discovery of bonds and offer a cheaper and increased source of short-term funding.
The guidelines also specify a wider array of eligible collateral securities and would promote a more liquid repo mar ket.
The eligible participants have also been expanded to cover not only banks but SDIs, securities dealers, corporates and high net worth individuals.
We have designed a Ghana country annex which specifies the supplementary terms or conditions to the GMRA to cover sell/back and forward transactions and made amendments to paragraph 2, 5, 10, 17, 19, 21 to the GMRA.
As the Deputy Governor said, there is an elaborate training program to ensure that key market players and stakeholders are adequately trained on this new product.
This training will cover the banks and the Judiciary.
The Judiciary is seen as a key stakeholder as they play a key role in giving legal certainty to the enforceability of standard financial markets master agreements such as the GMRA.
On that note, on behalf of the Bank of Ghana and the GFIM governing council , I would like to extend our warmest appreciation to Front Clear who ha s partnered with us to deliver the training programs targeted to market participants and other stakeholders .
I would also like to extend our appreciation to ICMA who has been a very supportive partner and provided key technical support.
I also thank t he members of the GFIM governing council for their commitment towards the delivery of these guidelines.
In concluding, on behalf of the Bank of Ghana and the GFIM governing council, I officially declare the Guidelines for Repurchase Agreement s duly launched, this event will be followed by a takeoff launch in Ghana on November 12, 2019 .
It is our expectation that these guidelines will provide the required boost in creating a vibrant, liquid and transparent bond market in Ghana.
DEPUTY GOVERNOR’S SPEECH ON THE LAUNCH OF GUIDELINES FOR REPURCHASE AGREEMENT IN GHANA Central Bank Governors, Ministers of Finance, CEO and representatives from the International Capital Markets Association (ICMA), CEO and 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.
I welcome you to this occasion of the launch of Guidelines for Repurchase Agreements in Ghana.
Purpose and rationale behind the Guidelines: A 2017 Barclays Africa (now ABSA) African Financial Markets Index , noted that of the six pillars they used in the assessment of African financial markets, improving the legal and regulatory frameworks through establishing the legality and enforceability of standard financial markets master agreements of the Ghanaian financial markets could provide a major boost and enhance liquidity in the bonds and equities markets.
The results of the Barclays survey noted that in Ghana, ISDA documentation (International Swap and Derivatives Association) was well recogniz ed but Global Master Repurchase Agreement (GMRA) was in limited use, Global Master Securities Lending Agreement (GMSLA) was rarely used and the insolvency framework needed to be strengthened.
Therefore in 2017, a stakeholder committee in Ghana, led by the central bank agreed on a simple regulatory environment by following the international ‘norm’ but customizing it to the local environment .
Some of the reform measures that were identified that could improve the legal framework for the financial markets in Ghana was the adoption of GMRA for repo trading and at a later stage the GMSLA for securities lending , the l inking of the local Central Securities Depository ( CSD) to international clearing platforms like Euroclear and the s trengthening of the insolvency framework in Ghana.
The Ghana Fixed Income Market (GFIM) governing council, which has been mandated to promote secondary market trading of securities supported the setup of a stakeholder committee with representation from the Ministry of Finance, the Bank of Ghana, the commercial banks, a lawyer from a private law firm, the Ghana Stock Exchange and the Ghana CSD to come out with the Guidelines for a GMRA -based repo trading in Ghana, a Country Annex and any oth er annexes to the GMRA that was required.
The role of repos Repos and reverse repos can be effective instruments for the conduct of monetary policy market operations by the central bank.
In Ghana for example we make use of a symmetric corridor in which depos with the central banks are conducted at the policy rate minus one percent and reserve repos are conducted at the policy rate plus one percent.
When properly structured, repos are effective vehicles for the monetary policy transmission process and can be used to defend the monetary policy rate.
Repo markets are also a key requirement of liquid Government debt markets, acting as a bridge between money and debt markets.
Repos conduct key functions for the efficient operation of debt markets; including, credit risk management, funding debt portfolios playing the yield curve and covering short positions and settlement failures.
Repos are a versatile instrument for a broad range of market participants with very different business models due to their hybrid nature; serving between a collateralized loan and a full transfer of ownership.
Core structure and content These guidelines have been developed in consul tation with key market stakeholders in the financial sector namely: G hana Fixed Income Market (GFIM), Central Securities Depository (CSD), with tec hnical support from International Capital Markets Association (ICMA) and Frontclear.
Our guidelines are set up to enforce the Global Master Repurchase Agreement (GMRA) and define with respect to applicable law all relevant aspects of repos traded in Ghana.
Key changes set out in these guidelines include; the absolute transfer of the title, rights, interest and benefits of any security used as collateral, the expansion of eligible instruments that can be used as collateral and the requirement for margin maintenance.
Market implementation including targeted training together with Frontclear The implementation of the guidelines will require training for stakeholders.
The Bank of Ghana together with Frontclear will be organizing a series of training programs starting from next week for all major players in the repo market.
These training programs will cover legal requirements for the judiciary and legal fraternity, as well as accounting, settlement, margining and collateral management for middle and back office of our financial institutions.
Market development expectations The adoption of these guidelines I believe will not only ensure legal certainty and enforceability but will also improve market transparency, liquidity and participation.
In conjunction with the development of the guidelines , Ghana is in the process of getting a corporate insolvency bill passed, and the BoG will issue a notice to clarify the eligibility of netting arrangements under the current Banks and Specialized Deposit Taking Institutions Act (BSDTI Act) .
This will make Ghana only the third netting positive jurisdiction in Africa and we look forward to the positive effect this will have on our economy.
Looking ahead we hope to develop our Repo market to grow beyond the borders of Ghana to improve intra African trade.
It is my firm belief we would one day be here again for an other launch but this time for whole of the African continent.
Learning and challenges ahead As with any new journey it will come with its own challenges but with the lessons learned from developed markets we hope to surmount any challenge.
To my fellow African Governors , I encourage you to share with us for those who have more developed repo markets and to those who are now starting, let’s come together and work to make the African financial markets the next destination of global investors.
To our partners, your technical assistance is invaluable.
We will continue to rely on your support to build capacity and achieve similar milestones in our markets.
In conclusion I will like to say a thank you for honouring our invitations.
I would also like to encourage all of us to use this platform to engage with each other to discover what mutual opportunities there are to share.
1 GHANA ASSOCIATION OF BANKERS - 17th ANNUAL WORKING LUNCHEON KEYNOTE ADDRESS BY DR.
ERNEST ADDISON - GOVERNOR, BANK OF GHANA 13TH SEPTEMBER 2019 KEMPINSKI HOTEL, ACCRA Mr Chairman; The Executive Secretary; Members of the General Council; Managing Directors of Banks; Fellows and Associates of the Ghana Association of Bankers; Members of the Banking Fraternity; Distinguished Guests; Ladies and Gentlemen; 2 1.
A very good afternoon to you all and let me extend my warm greetings and welcome you to the 19th Annual working luncheon of the Ghana Association of Bankers (GAB).
It is indeed a great pleasure to be invited to address this working luncheon of the Ghana Association of Bankers, bringing together Chief Executives of Banks in Ghana.
To begin, allow me to highlight the critical role of the banking sector to the national development agenda.
The growth experience of the banking industry is necessarily intertwined with that of the economy as a whole.
And the industry has necessarily been central to economic policy and structural reforms because a sound and efficient banking system is ind ispensable for financial stability and indi spensable for a healthy and robust economy.
Chairman, we have gathered here at a time of completion of actions to reform our financial sector and a time when a lot of gains have been made in country’s monetary and financial stability, and confidence is being restored.
These gains should begin to translate into lower interest rates that Ghana pays for issuing debt, as well as lead to further anchoring of inflation expectation s at the low and stable levels and financial stability.
However, our ability to maintain this confidence depends on the freedom with which the central bank is able to take necessary but unpopular decisions to restore price and financial stability.
I would want to say that the Bank of Ghana has enjoyed considerable political support enabling it to be effective to implement these rather difficult measures to comp rehensively reform the banking and specialized deposit taking institutions sectors of the financial system.
These have involved, increase s in the minimum capital of universal banks, resulting in some cases merge rs and acquisitions, to ensure orderly consolidation of the sector.
And in some cases involving i nsolvent institutions without any franchise value, where licenses were revoked .
These reforms have rather sadly been misconstrued as being driven by some unseen hands to score political objectives.
Ladies and Gentlemen, I would like to place on record that these difdficult decisions taken by the Bank of Ghana were based on its technical assessment and judgment of the conditions facing the financial sector.
In particular, I would like to take this opportu nity to clarify the misinformation about the circumstances surrounding the license revocation of the Heritage Bank.
We were quite measured not to engage with the directors of the Bank at the time, but sometimesit pays to clarify such actions to avoid mispe rceptions.
During our assessments of this bank, we were able to unravel the financial engineering that went into the creation of false capital upon which the then Heritage Bank obtained its license.
The Heritage Bank did not have the initial GH¢120 million capital required to obtain the Universal Banking license that was 4 granted in 2016.
In fact, the shareholders and directors of the Heritage Bank had roundtripped on a GH¢30 million payment made by Cocobod to Alive Industries , a related company belonging to the principal shareholder—bank statements and the transaction documents are available for those who are interested to review.
Discriminatory Reforms 6.
There has also been some assertions that the Bank of Ghana has allowed banks that were not able to raise the minimum capital by the deadline to continue even after the deadline.
I am sure you all followed the debate on the need to support indigenous banks which received a favourable response from the Government through the creation of the Ghana Amalgamated Trust.
The Banks that received support from GAT met the qualifying criteria of being better governed and well managed.
What is being perceived as discriminatory should rather be seen as the reward for better corporat e governance and good management.
That was the qualifying criteria.
With the exception of the two state -owned banks (ADB and NIB), the private banks that received assistance were assessed and considered better managed than those that had their licenses revoked.
5 Section on Bailout or Resolution 7.
Now, the question on people’s minds is whether Bank of Ghana could have used the bail -out money to keep the banks in operation.
Ladies and Gentlemen, such reasoning suggests a lack of understanding of the fundamental issues at play.
L et me say that the underlying factors that accounted for the resolution of the banks were deeper than liquidity issues.
Here, one can mention very serious infractions, weak governance structures and related-party transactions which rendered those defunct banks insolvent.
I will not rehash these issues but rather look forward to the emergence of a stronger and well -capitalised banking sector, and as major stakeholders of the financial sector, we should all commit ourselves to never roll bac k the gains we have achieved in the industry.
The Bank of Ghana is confident that the actions taken in terms of recapitalisation, closure of insolvent banks and widespread regulatory reforms will gradually bringing back trust and confidence in the Ghanaian banking sector.
Restoring the Health of the Banking Sector 8.
Ladies and Gentlemen, I have every reason to feel confident about gains a nd achievements made so far in the financial sector.
The financial sector is currently healthier and better able to withstand external shocks compared to the financial sector at the beginning of 2017.
It is better capital ized, liquid, 6 profitable, and more efficient and has adequate capital buffers to enable it manage any adverse external developments.
Such an optim istic outlook seemed nearly impossible in 2017 when we started these reforms.