Regulatory Alerts2022-07-06
Eligible Collaterals Directive
The Bank of Ghana has issued this directive to broaden the scope of eligible collateral for computing Single Obligor Limits and financial exposure under Section 62 of Act 930. It expands acceptable instruments to include ESLA bonds, government-guaranteed fixed income securities, landed property, motor vehicles, plant and equipment, and various domestic and foreign debt instruments, provided they meet liquidity and legal certainty standards. Regulated financial institutions must implement robust collateral management systems, apply appropriate supervisory or internal haircuts, and maintain a minimum 120% market value coverage to secure lending exposures.
Share