In Today’s FridayRead we look at the pre-requisite for a license under the Bank and Specialised Deposit Taking Institution Act, 2016 (the “Act”).
The Act provides that the Bank of Ghana (the “BOG”) has the sole responsibility for the issuance of licenses to banks and specialised deposit taking institutions in Ghana.
An institution shall not accept a deposit from the public or carry on a deposit-taking business in or from within Ghana without a licence issued in accordance with the Act. For a license to be issued, an applicant must satisfied BOG that:
(a) Feasibility report submitted by the applicant is based on sound analysis;
(b) the proposed directors and key management personnel of the applicant are fit and proper persons;
(c) the significant shareholders are suitable and the ownership structure of the proposed bank or specialised deposit taking institution will not hinder effective supervision;
(d) the paid-up capital of the applicant is adequate and the original sources of capital are acceptable and do not include borrowed funds;
(e) the arrangements for governance, including accounting, risk management, and internal control systems and records of the applicant are adequate;
(f) the applicant is not a shell company; and
(g) the applicant has complied with the Act, the Regulations, directives, and other legally-binding instruments made under the Act and any conditions that the BOG may impose.
It is worthy to note that BOG may refuse an application for a licence to carry on deposit-taking business or revoke a licence issued based on factors including instances where the applicant provide false, misleading or inaccurate information among other things.