Regulatory Alerts2025-09-12
Guidelines on the Management and Measurement of Credit Concentration Risk
The Bank of Ghana mandates that regulated financial institutions assess, measure, and manage credit concentration risk under Pillar II to prevent solvency threats from concentrated exposures. Institutions must implement board-approved governance frameworks, utilize robust measurement tools like the Herfindahl-Hirschman Index and Gini Coefficient, and enforce granular risk limits covering single-name, sectoral, geographical, and climate-related concentrations. These guidelines become effective on January 1, 2027, requiring institutions to align their internal capital adequacy processes and submit impact assessments by July 31, 2026.
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