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Stakeholders discuss draft bills to strengthen
NBFIs
Accra, Sept. 12, Ghanadot/GNA – The Bank
of Ghana (BOG) on Wednesday organized a stakeholders’
meeting to solicit views of financial sector operators on
two proposed draft bills aimed at ensuring smooth operations
of non-bank financial institutions and promote responsible
credit practices.
The BOG is seeking through the Financial Institutions
(Non-Banking) Bill to strengthen the regulation, supervision
and improvement in the overall performance of such
institutions in line with international best practices.
New law would replace the Non-Banking Financial Institutions
Law (PNDCL 328) under which the non-bank financial
institutions currently operate.
The Draft Borrowers and Lenders Bill seeks to promote a fair
marketplace access to credit and provide for the general
legal framework for credit and improved standards of
borrower information to prohibit unfair practices.
In an address at the opening session, Dr. Paul Acquah,
Central Bank Governor, said the two draft bills were
integral parts of a comprehensive regulatory framework to
ensure a sound, efficient and safe financial services centre
in the country.
He said there was the need for the non-bank financial
institutions to provide similar services to be well
regulated to enhance efficiency and transparency in the
sector.
On the Borrowers and Lenders Bill, Dr Acquah said rapid
growth in credit necessitated the establishment of a
credible system that was transparent and under which lenders
and borrowers understood their obligations.
Some of the proposals in the Financial Institutions
(Non-Banking) Bill include powers of the BOG as a regulator
to intervene in the conduct of a NBFI`s business to protect
customers in instances of violation of the bill,
insufficient assets to cover liabilities, among other
things.
The Bill also empowers the BOG to issue “cease and desist”
orders, appoint a receiver to manage the institution or
appoint a liquidator to wind up the business of the NBFI.
Other proposals are prudential requirements for
non-deposit-taking NBFIs such as Minimum Capital
requirements.
Mr Oko-Nikoi Dzani, President of the Non-Bank Association,
was positive that the new bills were going to spur
development in the sector.
He, however, expressed reservations about some aspects of
the draft bill that sought to impose minimum capital
requirements, saying as non-deposit taking institutions they
should be exempted.
GNA
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