2022-05-25

Prudential Requirements for Development Finance Institutions

The Bank of Ghana has issued an exposure draft establishing comprehensive prudential requirements for Development Finance Institutions to operationalize the Development Finance Institutions Act, 2020. The directive mandates minimum capital adequacy, leverage, and liquidity ratios of 10%, 4.5%, and 10% respectively, while capping wholesale DFI lending at 50% of shareholders' funds and restricting foreign currency borrowing to 75% of regulatory capital. It further enforces strict corporate governance standards, asset and liability management protocols, permissible investment limits of 20% of total assets, and timely periodic reporting to ensure financial stability and sound risk management across the sector.

Ghana

Bank of Ghana

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