Improvement in legal frameworks, operational systems necessary — BoG
The Bank of Ghana (BoG) has called for stronger legal frameworks and operational systems to improve safety and confidence in the country’s financial markets.
The central bank said this would help reduce legal and operational risks, strengthen market stability and promote investor confidence in the country’s growing financial sector.
At a financial market training workshop in Accra yesterday, the first Deputy Governor of the BoG, Dr Zakari Mumuni, said market growth must be supported by clear documentation, proper risk management, and legally enforceable agreements.
Event
The workshop was organised by BoG, in partnership with Frontclear, to strengthen capacity within the country’s financial markets.
It was attended by financial market participants in Accra to help improve their understanding of globally accepted repo and derivatives documentation standards.
The programme focused on the implementation of the Global Master Repurchase Agreement (GMRA) and International Swaps and Derivatives Association (ISDA) documentation, which were widely used in international financial transactions.
Participants were also trained in collateral management, margining, and risk mitigation measures to ensure safer and more efficient financial market operations in the country.
Unclear documentation
Dr Mumuni said relying on informal arrangements and unclear documentation could expose financial institutions to unnecessary risks and also weaken market stability.
He, therefore, urged banks and financial market players to strengthen legal, treasury, and risk management systems to support long-term development and resilience of the country’s financial sector.
Dr Mumuni further said that a strong financial market depended not only on trading volumes, but on solid legal and operational structures that guaranteed safety and confidence.
“The integrity of Ghana’s financial markets cannot rest on informal conventions or ambiguous documentation.
“It must rest on legally enforceable agreements, operationally sound processes, and professionals who understand the risks and responsibilities involved,” he said.
Collaboration
Dr Mumuni further said that the country’s expanding financial markets required greater collaboration among treasury, legal and risk management teams within financial institutions to ensure sound and secure transactions.
He said a long-term growth of the country’s financial sector would depend on the ability of institutions to build effective operational structures, improve legal literacy and strengthen risk culture across the industry.
“A sound financial transaction demands coordination across front office, risk management, legal operations and senior management. These functions form a critical tripod, no leg of which can be weak without compromising the whole,” the Deputy-Governor added.
He said internationally recognised standards such as the GMRA and ISDA documentation were essential for reducing legal uncertainty, improving liquidity management and supporting orderly market development.
“The value of this programme would be measured not by the presentations delivered, but by the quality of the debate and the practical insights carried back to your various institutions,” Dr Mumuni said.
