Executives of failed financial institutions barred from holding key positions – BOG

The Bank of Ghana maintains that it has disqualified all key shareholders, directors, and management personnel of failed banks and SDIs from holding key positions.

In a public notice on Thursday, July 11, BOG argued that poor corporate governance practices contributed “significantly” to the failure of the Regulated Financial Institutions (RFIs), resulting in the clean-up of the sector between 2017 and 2019.

The BOG said it issued the Corporate Governance Directive and the Fit and Proper Persons Directive in 2018 and 2019, respectively, to bolster effective corporate governance in the RFIs.

In addition, a Corporate Governance Disclosure Directive was also issued to enhance governance disclosure directives under the Basel III Capital Accord, according to the Central Bank.

“In order to promote the safety and soundness of RFIs, the BOG is bringing to the attention of RFIs their obligations under the Bank and Specialised Deposit-Taking Institutions Act 2016, (Act 930), and the Fit and Proper Persons Directive, 2019 to ensure the continuous fitness and propriety of significant shareholders and persons serving as directors and key management personnel of RFIs,” the notice explained.

“The BOG reminds the public that persons who have been directly implicated in the 2017-2019 Financial Sector clean-up and all previous directors of failed banks and SDIs since the enactment of the Bank and Specialised Deposit-Taking Institutions Act 2016, (Act 930), do not qualify to hold key positions under the fit and proper persons criteria,” it added.