Asiama: BoG to cleanup Specialized Deposit-Taking Institutions Sector - Channel1 News

Dr. Johnson Asiama, the Governor of the Bank of Ghana (BoG), has stressed the need to improve Ghana's Specialized Deposit-Taking Institutions (SDIs) sector.

During a press conference on March 28, he discussed ongoing talks with the Ministry of Finance. He stated, “Yes, there has to be a cleanup of that sector.” The Bank of Ghana is working closely with the Ministry to revamp this area.

In November 2024, BoG introduced an outsourcing directive for financial institutions. This directive aims to enhance governance and risk management in banks and SDIs. Institutions must comply by July 1, 2025, or face penalties of GHȼ12,000.

The Bank's actions show its commitment to a strong financial sector in Ghana. It seeks to enforce strict governance standards as outsourcing trends rise among banks and SDIs.

The directive specifies which functions can be outsourced by regulated financial institutions (RFIs). However, RFIs must obtain prior approval for any outsourcing activities. Certain key functions must remain in-house to maintain decision-making integrity.

For instance, RFIs cannot outsource strategic functions like Board responsibilities or senior management tasks. This includes corporate planning and compliance with Anti-Money Laundering (AML) regulations. Functions such as internal audit and risk management are also restricted from being outsourced.