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(1) The Bank of Ghana may issue directives to banks generally or to a particular bank where the Bank of Ghana is satisfied that

(a) it is necessary to secure the proper management of a bank generally,

(b) it is necessary to prevent the affairs of a bank being conducted in a manner detrimental to the interests of depositors or prejudicial to the interests of the bank, or

(c) it is necessary in the interests of bank policy.

(2) Bank of Ghana may issue directives providing for:

(a) accounting, management information and internal controls including,

(i) the accuracy and reliability of the accounting system in general, and the completion of the prudential returns of the banking supervision department,

(ii) the effectiveness of management information systems, and

(iii) the effectiveness and enforcement of internal controls;

(b) comments to be made on the financial accounts of the bank which shall contain, among others,

(i) the financial performance of the bank during a period under review including the reliability and composition of reported earnings, the breakdown and analysis of operating costs, the liquidity and capital adequacy ratios,

(ii) the accounting policies and valuation criteria applied in the preparation of the accounts,

(iii) re-classifications and other adjustments made by the auditors to the accounts originally submitted for audit,

(iv) details of the adjustments not made to the accounts because they are not considered to be material,

(v) details of the areas where the manual of accounting for banks issued by the Bank of Ghana has not been complied with,

(vi) the full accounts of the bank for the period under review;

(c) regarding the adequacy of provisions made

(i) against the advances portfolio investment and other assets accounts,

(ii) against off-balance sheet items, and

(iii) for credits, accruals and other liabilities;

(d) audit work including

(i) the adequacy of work undertaken by the bank's internal audit department, and

(ii) the amount of audit work undertaken in particular areas including scope of tests, sampling criteria, coverage achieved, extended work, confirmation exercise with third parties.

(3) The Bank of Ghana may modify a directive issued under subsections (1) and (2) as it considers fit and those banks or that bank shall comply with the modification.

(4) A bank which fails to comply with the Bank of Ghana directives is liable to pay to the Bank of Ghana a fine not exceeding 1000 penalty units.