Ghana Deposit Protection Act will rebuild confidence in the banking sector – PwC Director
The Director for Pricewaterhousecooper, Kingsford Arthur has suggested that one of the ways the Bank of Ghana can restore the confidence of Ghanaians in the banking sector is by ensuring that the Act on establishing Ghana Deposit’s insurance scheme is fully complaint with the International Association of Deposit insurer principle.
The Ghanaian Deposit Protection Act complaint with international Association of Deposit insurer’s principle will ensure depositors funds are safeguarded in the event of failure of financial institution and ultimately increase confidence in the banking sector.
The Basel Committee on Banking Supervision (BCBS) and the International Association of Deposit Insurers (IADI) in 2009, published Core Principles for Effective Deposit Insurance Systems, setting an important benchmark for jurisdictions to use in establishing or reforming deposit insurance systems.
This was later revised in 2013 to strengthen the deposit insurance standards in several areas including reimbursement speed, coverage, funding and governance, adding more guidance on the deposit insurer’s role in crisis preparedness and management.
The revised principle also reflects the greater role played by many deposit insurers in resolution regimes while continuing to accommodate a diverse range of deposit insurance systems.
Speaking at the Chevening Speaker series on the theme” rebuilding public confidence in the banking sector in Ghana, Kingsford Arthur urged government to establish the Ghana Deposit’s insurance cooperation in compliance with the International Association of Deposit insurer principle.
“Government cannot always step in to pay the depositor, ultimately it is you and I that will bear the brunt and so the Depositors Insurance Scheme is becoming regular and it’s something that hopefully Ghana we have the act now. I’m told that the preparatory work is on now and hopefully next year it will come into operation”
He also recommended the Bank of Ghana must ensure that all banks in the country must register with the Ghana Deposit Insurance Cooperation.
Head of Banking Supervision, Bank of Ghana, Osei Gyasi added that there have been signs of improvement in the banking sector due to reforms in the banking sector.
He urged depositors to have confidence in the bank of Ghana system since it will ensure a resilient banking sector with good risk management system in the country.
The Chevening Speak series is an event by the Chevening Alumni Association of Ghana organized to discuss threatening issues that affect the country.