Regulatory Alerts2025-09-12
Large Exposures Directive
The Bank of Ghana has issued the Large Exposures Directive to establish prudential limits and risk governance frameworks for Regulated Financial Institutions, including banks, savings and loans companies, finance houses, and financial holding companies. The directive caps single counterparty exposures at twenty percent of net own funds for banks and financial holding companies, and fifteen percent for savings and loans and finance houses, while setting aggregate large exposure limits at six times and four times net own funds respectively. Effective January 2027, the rules require institutions to implement robust internal monitoring processes, submit Board-approved compliance plans by December 2025, and align their single obligor limits with Basel Committee standards to safeguard financial system stability.