ENTITLED

THE BANKING ACT, 2004

ARRANGEMENT OF SECTIONS

PART I—PRELIMINARY MATTERS

1. Application of the Companies Code

2. Functions of the Bank of Ghana

PART II—LICENSING OF BANKS

3. Eligibility restricted to Ghanaian Corporate Bodies

4. Banking licence mandatory

5. Application for licence

6. Provisional approval

7. Invitation to public to subscribe to shares

8. Final approval and issue of banking licence

9. Refusal of licence

10. Time limit for decision on application for banking licence

11. Permissible activities of banks

12. Restrictions on commercial, agricultural or industrial activities and immovable property

13. Grounds for revoking licence

14. Revocation procedure

15. Moratorium due to revocation of licence

16. Sanctions for unauthorised banking

17. Use of word ‘bank’

18. Inspection of suspected institutions doing banking without licence

19. Display of banking licence

20. Places of business to be licensed

21. Opening of representative office

22. Changes of regulations of banks

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PART III—CAPITAL AND RESERVES

23. Capital adequacy

24. Additional capital in respect of special risks

25. Capital adequacy on consolidated basis

26. Notifying non-compliance with capital requirements

27. Penalties for non-compliance with capital requirements

28. Persistent capital ratio deficiency

29. Transfer of profits to Reserve Fund

30. Restrictions on declaration of dividend

PART IV—LIQUIDITY

31. Maintenance of liquid assets

32. Notification of non-compliance with minimum liquidity requirements

33. Penalties for non-compliance with liquidity requirements

PART V—OWNERSHIP AND CONTROL

34. Transfer of shares affecting significant shareholdings

35. Disapproval of transfer of shares

36. Prohibition of transfers of, and changes in, the controlling interests

37. Penalties for non-compliance

38. Disqualification of directors, officers or employees

39. Disclosure of interest

40. Intervention of the Bank of Ghana in appointments

PART VI—RESTRICTIONS ON LENDING AND INVESTMENTS

41. Prohibition of advances against security of own shares

42. Limits on exposures

43. Restrictions on exposure

44. Restrictions on lending to staff

45. Requirements for lending to related parties

46. Restrictions on establishment of subsidiary company

47. Limits on investment in respect of subsidiary companies

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48. Limits on investment in respect of other institutions

49. Reporting of large exposures

50. Powers to vary the prudential limits

PART VII—POWERS OF SUPERVISION AND CONTROL

51. Regulations

52. Directives

53. Information and periodic returns

54. On-site examination

55. Investigation or scrutiny

56. Power of on-site examiners

57. Taking custody of records

58. Verification of information

59. On-site examination reports

60. Follow-up action on on-site examination reports

61. Banks to co-operate with conservator

62. Mandatory revocation of banking licence

63. Hearing of banks in matters relating to revocation of licence

64. Issue of final orders after examining a bank

65. Moratorium

66. Appeal to Minister against orders of Bank of Ghana

67. Ceasing of operations following revocation of licence

68. Winding up of bank and appointment of liquidator

69. Voluntary winding-up

PART VIII—ACCOUNTS AND AUDIT

70. Guidelines on accounting standards and disclosures in balance sheet and profit and loss account

71. Accounting records

72. Financial statements

73. Audit of bank’s accounting records

74. Appointment of auditors

75. The Bank of Ghana’s powers to appoint auditors

76. Auditor’s remuneration

77. Auditor's right to information

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78. Auditor’s report

79. Special audit and additional information

80. Termination of auditor’s appointment

81. Display of financial statements

PART IX—MISCELLANEOUS

82. Prohibition of floating charge

83. Secrecy of information

84. Secrecy of customer information

85. Disclosure by the Bank of Ghana of information relating to banks

86. Submission of reports on trend and progress

87. Protection for officials

88. Offences and penalties

89. Joinder of offences

90. Interpretation

91. Repeal of Banking Law, 1989

92. Validity of existing licences