Govt strengthens regulation, banks supervision — Dep. Finance Minister
A Deputy Minister of Finance, Dr Alex Ampaabeng, says government has made significant strides in strengthening the regulation and supervision of banks and special deposit-taking institutions in a comprehensive approach to ensure financial stability.
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This, he said, had become necessary to safeguard the system against challenges that had emerged in the past. “We have also enhanced the soundness of the insurance, pension, and capital market sectors. A key component of this strategy is the creation of the Ghana Deposit Protection Corporation (GDPC), which plays a pivotal role in safeguarding depositors’ funds and maintaining stability in the event of bank failures,” he stated.
Dr Ampaabeng was addressing the closing session of the International Association of Deposit Insurers (IADI)–Africa Regional Committee Workshop in Accra last Friday.
The four-day workshop, hosted by the GDPC, focused on the theme: "The Increasing Role of Deposit Insurers in Bank Resolution". It brought together financial regulators and deposit insurance experts from across Africa, enabling in-depth discussions and knowledge-sharing.
It involved expert panels and interactive workshops which delved into the complexities of effective bank resolutions, while networking opportunities encouraged collaboration among industry leaders, policymakers, and professionals.
GDPC aimed to equip participants with the necessary tools and knowledge to effectively protect depositor funds and strengthen the resilience of financial institutions.
Proactive measures
The First Deputy Governor of the Bank of Ghana, Dr Maxwell Opoku-Afari, also addressed the gathering and highlighted proactive measures taken by the central bank to enhance regulatory frameworks to ensure robust financial oversight.
He emphasised that the inclusion of deposit protection in curricula for tertiary educational institutions was not only to educate future finance professionals, but also to strengthen public awareness and confidence in the banking sector’s resilience.
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Dr Opoku-Afari made reference to ongoing collaboration with international bodies to align Ghana's deposit insurance practices with global standards, which were to further bolster the country's financial resilience.
The Secretary-General of the IADI, Eva Hüpkes, emphasised the crucial role of deposit insurers in maintaining global financial stability, especially in the light of recent banking challenges.
She stressed the importance of deposit insurers adhering to rigorous principles in safeguarding deposits, highlighting their pivotal role in enhancing the resilience of financial systems and fostering public confidence.
Insurance sstems
The Chief Executive Officer of GDPC, Pearl Esua-Mensah, underscored the critical importance of deposit insurance systems in today's global financial environment.
“In the light of recent global financial challenges and bank failures, deposit insurance systems are indispensable for maintaining financial stability. This workshop serves as a vital platform for exchanging insights, experiences, and best practices crucial to effective bank resolutions,” she stated.
Mrs Esua-Mensah emphasised the workshop's educational aspect, aimed at deepening participants' understanding of safeguarding depositor funds and ensuring the integrity of financial institutions.
“Together, we aim to leverage collective knowledge to tackle the challenges and opportunities ahead,” she stressed.
About the GDPC
The GDPC is a statutory body established under the Ghana Deposit Protection Act, 2016 (Act 931) as amended, to protect depositors’ funds in the event of a bank failure. It is intended to contribute to promoting financial stability and public confidence in the Ghanaian banking system.