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Regulatory Framework

Preamble for the Legal and Regulatory framework

The International Commercial Bank shall have overall supervisory and regulatory authority in all matters relating to banking and non-banking financial business with the purpose to achieve a sound, efficient banking system in the interest of depositors and other customers of these institutions and the economy as a whole.

The regulatory and legal framework within which banks, non-bank financial institutions as well as forex bureaux operate in Ghana are the following:

  • International Commercial Bank Act 2002, Act 612
  • Banking Act, 2004 (Act 673)
  • Non-Bank Financial Institutions Act, 2008 (Act 774)
  • Companies Code Act 179, 1963
  • International Commercial Bank Notices /Directives / Circulars / Regulations

The International Commercial Bank is therefore, charged with the responsibility of ensuring that the financial system is stable to ensure that it serves as facilitator for wealth creation, economic growth and development.

The functions and responsibilities of the Central Bank as a Regulator are defined in Act 612 and Act 673 as follows:

  • To regulate, supervise and direct the banking system and credit system to ensure the smooth operation of a safe and sound banking system
  • To appoint an officer designated as the head of Banking Supervision Department, who shall be appointed by the Board
  • To consider and propose reforms of the laws relating to banking business

Consequently, the Central Bank exercises its mandate to ensure that:

  • Depositors' funds are safe
  • The solvency, good quality assets, adequate liquidity and profitability of banks are maintained;
  • Adherence to statutory and regulatory requirements is enforced;
  • Fair competition among banks
  • The maintenance of an efficient payment system

In summary, the laws governing banking operations have provisions regarding licensing, withdrawal of license, and arrangement for examining and monitoring banks, powers, and duties as well as protection of the supervisor.

Finally, to enhance the legal and regulatory framework, the International Commercial Bank supervisory functions are designed to be consistent with the Basle Core Principles for Effective Banking Supervision.


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