In this Act, unless the context otherwise requires,

"applicant'' means a body corporate;

"the Bank" means the Bank of Ghana;

"bank" means a body corporate which is issued with a licence in accordance with this Act to carry on banking business;

"banking business" means

(a) accepting deposits of money from the public, repayable on demand or otherwise and withdrawable by cheque, draft, orders or by any other means;

(b) financing, whether in whole or in part or by way of short, medium or long term loans or advances, of trade, industry commerce or agriculture and

(c) any other business activities that the Bank of Ghana may prescribe or recognise as being part of banking business.

"banking policy" means a policy which is specified by the Bank of Ghana in the interests of the banking system or in the interests of monetary stability or sound economic growth;

"capital adequacy ratio" of a bank is the ratio expressed as a percentage of its capital base to its risk weighted exposure;

"chief executive" in relation to a bank, means a person, by whatever name called, who is responsible, subject to the authority of a bank's board of directors, for the conduct and management of the business of the bank;

"connected lending" or "lending to related parties" means taking a financial exposure in respect of

(a) directors or significant shareholders,

(b) firms or companies in which a director or a significant shareholder is interested, directly or indirectly as director, controlling shareholder, partner, proprietor, employee or guarantor,

(c) holding or subsidiary companies of the company in which a director or significant shareholder is interested, directly or indirectly, as director, controlling shareholder, partner, proprietor, employee or guarantor;

"controlling shareholding" means a direct or indirect holding in a bank

(a) which represents more than fifty per cent of the capital or of the voting rights, or

(b) which makes it possible to exercise a significant influence over the management of the bank in which a holding subsists;

"financial exposure" of a bank to a person, firm, body corporate, or any unincorporated body of persons, concern or combination of that person, firm, body corporate, or an unincorporated body of persons, concern or combination shall be taken to be the aggregate of

(a) the loans, advances and credit facilities (including off-balance sheet obligations) given to that person, firm, body corporate, or an unincorporated body of persons, concern or combination, and

(b) the value of the bank's holdings of shares and debentures and other debt securities issued by that person, firm, body corporate, or an unincorporated body of persons, concern or combination; and in computing the financial exposure the following assets that may be held as collateral shall be deducted:

(c) cash deposit;

(d) lien on term deposit with the bank;

(e) market value of Treasury Bills, Government Securities and Bank Securities, and

(f) other securities approved by the Bank of Ghana;

"foreign bank" means a bank incorporated in Ghana in which not less than sixty per cent of the equity share capital is held by foreigners;

"large exposure" means financial exposure to a single borrower or group of connected borrowers that in the aggregate exceeds ten per cent of the bank's net own funds;

"Minister" means the Minister responsible for Finance;

"net own funds" means the sum total of share capital that has been paid up, free reserves, including the reserves that have been created out of revaluation of fixed assets with the consent of the Bank of Ghana subject to netting out the accumulated losses and unwritten-off capitalised expenditure;

"net worth" means shareholders funds and includes stated capital, capital surplus from revaluation of assets and other reserves;

"prescribed" means prescribed by Regulations or Rules or directives issued by the Bank of Ghana;

"significant share holding" means a direct or indirect holding in a bank

(a) which represents ten per cent or more of the capital or the voting right, or

(b) which makes it possible to exercise a significant influence over the management of the bank in which a holder subsists.