1 . 0 GENERAL OVERVIEW OF THE FINANCIAL SECTOR
Ghana economic climate is made up of a number of banks and non-bank financial institutions including the Traditional bank of Ghana which as the Central Bank gets the responsibility of advising authorities on the rendering and power over monetary policies. Other players of the economic sector include the Commercial banking companies, Merchant banking companies, discount residences, Insurance companies procurment companies, investment capital, mortgage financing institutions, stock exchange and credit unions, Direct financing of projects in the area is furnished by the commercial and other banking companies.
Bank of Ghana is usually mandated to obtain overall relief and regulatory authority in all matters associated with banking and non banking financial businesses. The objective is usually to achieve a appear, efficient financial system in the interest of depositors and other customers of these institutions and the economy in general.
The regulating and legal frameworks inside which financial institutions and not bank financial institutions as well as foreux bureaus run in Ghana are the pursuing:
Bank of Ghana Work 2002, Take action 612
Financial Act 2004 (Act 673)
Financial Institutions (Non Bank) Regulation 1981 PNDC Law 328
Companies Code Act 179, 1963. one particular
Bank of Ghana Notice/Directives/Circulars and Polices.
Bank of Ghana is likewise charged with responsibilities of making certain, the financial system is stable, it also is facilitator intended for wealth creation, economic growth and development. In addition to these, Bank of Ghana can be charged to make sure that depositors funds with the banks and non banks are safe. The solvency, good quality property, adequate liquidity and earnings of the banks and non bank banking institutions are supervised by Traditional bank of Ghana. It is also the obligation of Traditional bank of Ghana to ensure that banking institutions and non banking financial institution adhere to statutory and regulating requirements and in addition enforces compliance. Bank of Ghana should be to ensure good competition between banks and maintenance of an effective payment system.
Before the issuance of universal banking license in Ghana, Business banks were mandated to complete Commercial financial. Now commercial Banks are required to maintain a minimum of 57% of total deposits in water reserves.
The National Investment Bank is usually an industrial development lender providing economical assistance to production and digesting industries including agro professional, it retains branches in all the regions of the region.
The Agricultural Development Lender saves principally the farming sector вЂ“ food creation, livestock reproduction, poultry farming and digesting of gardening produce. Agricultural Development Banking institutions has more than 31 branches throughout Bekwai, ghana.
Rural Banks: Rural Banking companies are device banks set up to provide features for the rural communities through which they are located. They are held managed and patronized by the
People. Many of these banks also operate companies to appeal to communities that are located far from the bank's facilities. Savings mobilized through the rural banking institutions are mostly invested in small scale agricultural activities, cottage industries, vehicles and trading. There are currently over one hundred twenty rural financial institutions in Bekwai, ghana. Rural financial institutions also provide industrial banking solutions.
Leasing companies, before the enactment of renting law in 1992, hire purchased organization were carried out by the banking institutions in Ghana. Three procurment companies have got emerged and they are generally offering amongst others equipment leasing in Bekwai, ghana. These are Bekwai, ghana leasing Business Ltd, Standard leasing firm ltd and Lease Agric.
Venture capital gives capital to start-ups and high risk ventures. The Bekwai, ghana venture capital pay for limited (GUCF) is been able by Opportunity Fund Supervision Corporation which is the lead investor and was became a member of by a handful of local banking institutions and other international financial institutions. Capital raising focus mainly on medium-sized indigenous progress...
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Industries and Amounts Approved for SMEs (1995 вЂ“ 2005)