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(1) A bank or specialised deposit-taking institution shall not lend on preferential terms to an employee of that bank or specialised deposittaking institution unless the lending is part of a formally approved employment package or employee benefit plan.

(2) A bank or specialised deposit-taking institution shall not grant to an employee of that bank or specialised deposit-taking institution an unsecured advance or credit facility, the aggregate amount of which exceeds two years’ total emoluments of that employee.

(3) The aggregate amount of loans on preferential terms, both secured and unsecured, by a bank or specialised deposit-taking institution to employees shall not exceed twenty percent of the net own funds of that bank or specialised deposit-taking institution.

(4) A bank or specialised deposit-taking institution which grants an advance or credit facility in contravention of this section is liable to pay to the Bank of Ghana,

(a)  an amount of money calculated as one-half per mile of the over-exposure for each day that the over-exposure persists; and

(b)  an  administrative  penalty  of  not  more  than  one  thousand penalty units.

(5) For the purpose of calculating capital adequacy, a financial exposure that is in contravention of this section shall be deducted from capital.

(6) For the purpose of this section, the term “employee” includes a key management personnel other than an executive director.