From American Banker By TAMAR FRANKEL July 10, 2014 Many contributors helped bring about the most...
Non-Bank Financial Institutions Act No. 774
(enacted in 2008)
Non-Bank Financial Institutions Act No. 774 of 2008 (NBFI Act) is the main law governing non-bank financial institutions and licensed money lenders in Ghana. The NBFI Act repeals NBFI Law No. 328 of 1993 and the Money Lenders Ordinance (Cap. 176) of 1940.
Non-bank financial services are defined as: leasing operations; money lending operations; money transfer services; mortgage finance operations; non-deposit-taking microfinance services; credit union operations; and any other services or operations as the Bank of Ghana may from time to time by notice designate as such. The act does not apply to operators of microfinance services with risk assets inferior to the amounts prescribed by the Bank of Ghana and whose sources of funds do not include deposits from the public.
The act discusses the following:
- Application and licensing including:
- Qualification for a license;
- Application and licensing procedures;
- Revocation, suspension, or restriction of license;
- Capital, liquidity, and other requirements including:
- Paid-up capital;
- Liquid assets;
- Single party exposure;
- Requirements for lending to related parties;
- Ownership and corporate governance;
- Accounts and financial statements;
- Powers of supervision and control including:
- Recognizing the ability of the Bank of Ghana to delegate regulatory and supervision authority to an authorized agent such as an apex body, network, industrial association, or self regulatory organization;
- Liquidation; and
- Miscellaneous matters including confidentiality and information records.