The Bank of Ghana has raised concerns that weak legal documentation and poor risk management practices could undermine confidence in Ghana’s growing financial markets if urgent reforms are not implemented.
The First Deputy Governor of the Central Bank, Zakari Mumuni, said Ghana’s financial sector can no longer rely on informal arrangements due to the increasingly sophisticated and complex nature of market transactions.
Speaking at the BoG/Frontclear Market Training Workshop on Repo Guidelines, Global Master Repurchase Agreement (GMRA), and ISDA Documentation in Accra, Dr. Mumuni stressed that legal certainty and operational discipline are now essential for maintaining financial stability.
“The integrity of Ghana’s financial markets will be independent from informal conventions and ambiguous documentation. It must rest on legally enforceable agreements, operationally sound processes, and professionals who understand precisely what they have signed,” he stated.
The workshop brought together officials from commercial banks, treasury departments, legal and risk management teams, the Ghana Fixed Income Market, Central Securities Depository, and the Ghana Securities Industry Association to build capacity in global financial market standards.
Dr. Mumuni explained that as Ghana’s fixed-income market continues to expand and adopt more sophisticated financial instruments, institutions must strengthen their internal controls, legal frameworks, and risk management culture.
He noted that repo markets have become increasingly important in supporting liquidity management and the implementation of monetary policy.
Highlighting the importance of ISDA documentation in derivatives trading, the Deputy Governor said the framework helps financial institutions effectively manage payment obligations, collateral arrangements, and default risks.
He further called for stronger collaboration between treasury, legal, risk management, and operations departments within financial institutions.
“A sound financial transaction demands strong coordination across the front office, risk management, legal, operations, and senior management,” he stressed.
Dr. Mumuni also encouraged open discussions on collateral management, close-out netting, and operational readiness to improve resilience within Ghana’s financial system.
The Bank of Ghana reaffirmed its commitment to working closely with market stakeholders and international partners, including Frontclear, to deepen liquidity and strengthen confidence in the country’s financial markets.
