Parliament urges BoG to apply new laws strictly

Parliament has advised the Bank of Ghana (BoG) to strictly implement the Banks and Specialised Deposit Taking Bill (2015) as well as the Ghana Deposit Protection Bill (2015), when they receive presidential assent soon.

Both bills are awaiting presidential assent to become laws and the Majority Leader is hopeful that depositors’ funds will be protected following their passage.

Of the 19 bills passed by the fourth session of the six parliament of the republic, Majority Leader, Alban Sumani Bagbin, emphasized the need for Bank of Ghana to ensure that it implements the two to the letter, in view of the upheavals in the financial services industry.

“The last two bills are very instructive and represent a timely response to the call by this house for the Bank of Ghana to take urgent measures to protect the interests of depositors particularly funds of innocent investors, with micro-finance companies. I wish to urge the Bank to implement to the letter the provisions of the bills when they come into force.”

The Ghana Deposit Protection Bill, 2015 is expected to establish a Deposit Protection Scheme to protect a small depositor from loss incurred by the depositor as a result of the occurrence of an insured event and to support the development of a safe, sound, efficient and stable market-based financial system in Ghana.

Inherent in the Scheme is also the establishment of the Deposit Protection Fund which constitutes the assets of the Scheme and the Deposit Protection Corporation to manage the Scheme efficiently and effectively towards the attainment of the objects of the Scheme.

The Banks and Specialised Deposit Taking Bill is also expected to address the supervisory and regulatory gaps to enable the Bank of Ghana superintend financial service providers in the microfinance businesses, address bank resolution, ensure financial consumer protection and promotion of innovation and financial inclusion.

Other notable bills passed and awaiting presidential assent include the Chartered Institute of Taxation Bill (2014), Maritime Pollution Bill (2015), Revenue Administration Bill, NADMO Bill (2015), Technical Universities Bill, Bank of Ghana Administration Bill (2016), and the Public Financial Management Bill (2016).

Others are the Petroleum Exploration and Production Bill (2016) and the Securities Industry Bill.