Banking Act No. 673 of 2004


(amended through 2007)

Banking Act No. 673 of 2004 is the main law governing commercial, rural and community banks in Ghana. This act provides the legal framework for the Bank of Ghana to regulate the banking sector. This act was amended by Banking (Amendment) Act No. 738 of 2007, a copy of which can be found under “Related Amendments.”

This act discusses the following:

  • Functions of the Bank of Ghana;
  • Licensing of banks, including:
    • Restriction on eligibility to Ghanaian corporate bodies;
    • Application process for a banking license;
    • Permissible and restricted activities;
    • Grounds for and procedure of the revocation of license;
    • Sanctions for unauthorized banking;
  • Capital and Reserves, including:
    • Capital adequacy;
    • Penalties for non-compliance with capital requirements;
    • Persistent capital ratio deficiency;
  • Liquidity, including:
    • Maintenance of liquid assets;
    • Penalties for non-compliance with liquidity requirements;
  • Ownership and Control, including:
    • Conditions for the transfer of shares;
    • Penalties for non-compliance;
    • Disqualification of directors, officers or employees;
    • Disclosure of interest;
  • Restrictions on lending and investments, including:
    • Prohibition of advances against security of own shares;
    • Limits and restrictions on exposure;
    • Requirements for lending to related parties;
    • Restrictions on establishment of and lending to subsidiary companies;
  • Powers of supervision and control, including:
    • Regulations and directives;
    • Information and on-site examination;
    • Investigation or scrutiny;
    • Taking custody of records;
    • Revocation of license;
    • Winding up of a bank;
  • Accounts and audits, including:
    • Guidelines on accounting standards and disclosures in the financial statements
    • Regular and special audits;
    • The Bank of Ghana’s powers to appoint auditors;
  •  Miscellaneous matters, including:
    • Secrecy of customer information;
    • Disclosure by the Bank of Ghana of information relating to banks; and
    • Offences and penalties.