...LIMITED UNDER THE NEW BANKING (AMENDMENT) ACT, 2007 ACT (738)
The Banking (Amendment) Act was passed on June 18th 2007, and establishes the basis for an International Financial Services Centre (IFSC). The Act provides the framework for an international services gateway that would provide access to a diversified range of financial instruments and services on the global financial market. The Act is one of the pieces of overall legislative reforms, including the New Foreign Exchange Act, 2006, to develop an efficient financial services industry in Ghana.
The new Banking (Amendment) Act, 2007, provides three categories of banking licence;
• Class I Banking Licence: allows the holder to transact domestic banking business, currently classified as Universal Banking Licence.
• Class II Banking Licence: allows the holder to conduct banking business or investment banking business with non-residents and other Class II bank licence holders in currencies other than the Ghanaian currency except to the extent permitted by the Bank of Ghana for trading on the foreign exchange market of Ghana and investment in money market instruments; and
• General Banking Licence: allows both Class I and Class II banking business in and from within Ghana.
Foreign banks can now establish branches in Ghana to undertake Class II banking business.
In line with the Bank of Ghana’s policy of licensing only reputable and internationally active banks, the Bank of Ghana has issued, on 28th August 2007, its first General Banking Licence to Barclays Bank of Ghana Limited, a fully-owned subsidiary of Barclays Bank PLC, UK. The General Banking Licence allows Barclays Bank of Ghana Limited to operate the first banking business under the International Banking component of the IFSC.
The International Financial Services Centre will have a full range of non-bank financial services, and is a part of a comprehensive financial sector development programme.
