Regulatory Alerts2020-06-22
Financial Holding Companies Directive
The Bank of Ghana issued this Directive to establish a comprehensive regulatory framework for Financial Holding Companies controlling banks or specialized deposit-taking institutions under the 2016 Banking Act. The regulation mandates a non-operating corporate structure, implements a two-phase registration process requiring feasibility reports and minimum capital contributions, and enforces strict prudential standards including capital adequacy ratios and limits on insider-related transactions. It further clarifies governance obligations, permissible activities, consolidated supervision mechanisms, and the central bank’s authority to divest banking subsidiaries or withdraw registration upon non-compliance.
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