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FINANCIAL SECTOR DIVISION

1.1 SITUATION ANALYSIS

1.1.1  Strength

i.  Experienced and focused leadership;

ii.  Good working relationship with financial sector regulators and industry players;

iii.  Young and dynamic staff;

iv.  Support from development partners; and

v.  Well equipped (logistically).

1.1.2 Weaknesses

i.  Lack of very strong and dependable teamwork;

ii.  Lack of key software for analysis and data capturing by Division (Bloomberg);

iii.  Low and inexperienced staff;

iv.  Low staff remuneration; and

v.  Lack of publicity and information about the existence of the Division.

1.1.2  Opportunities

i.  Ongoing Projects within the Sector;

ii.  Development of a database on all financial sector information; and

iii.  Access to free research on best practices from the internet and other financial sector

publications.

1.1.4 Threats

i.  Delays in the submission of reports by Regulatory Agencies;

ii.  Possible confliction of work with other regulatory bodies;

iii.  Informal sector not captured under any comprehensive legislation; and

iv.  Possible disagreements on the divisions quest to realign certain functions of some

regulators.

1.2 VISION

A Financial Sector that is efficient in the mobilization and allocation of funds; fully integrated

with the global financial system and supported by a regulatory and supervisory system that

promotes a high degree of confidence.

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1.3 MISSION STATEMENT

FSD exists to formulate, implement and monitor policies and programs to promote a vibrant

financial sector integrated within a global financial system aimed at stimulating growth by

strengthening and deepening the sector, improving the legislative, regulatory and supervisory

framework and developing national capacity to improve the outreach of financial services.

1.4 TERMS OF REFERENCE

I.  Policy analysis on Ghana’s financial sector;

  Financial Sector Stability: financial regulatory and stability issues in a Ghanaian and

international context in consultation with the regulatory agencies. This will also include

payment systems and anti-money laundering issues.

  Development: Advice on policies that will help foster a strong, competitive, and sound

financial markets. Bond market devt. (government, corporate, municipal), Equity

market, Securitisation markets, Mortgage, Derivatives, Development Financing etc.

  Policy and Regulation: regularly updating financial sector legislation and regulations in

line with international standards and principles.

  Performance: trends within the sector, including financial institution, corporate

strategies and performance, the impact of globalization and emerging technologies.

  Structural issues: Structural issues related to ownership, investments, foreign entrants

and corporate governance.

II.  Periodic round table with key players of financial industry and publish a periodic report

on financial sector developments for both internal and external dissemination;

III.  Consumer Issues – relates to issues in the financial services sector to develop policies,

strategies and legislation in access to financial services, financial literacy and initiatives

to promote them;

IV.  Investor Related Issues;

V.  Any other functions that will be assigned to the division;

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1.5 FSD STRUCTURE

 1.6 FUNCTIONS OF VARIOUS UNITS

1.6.1 Banking and Non-Banking Financial Institutions

The Unit will be responsible for coordination of the implementation of the Banking and NBFI

activities under the EMCB.

The Banking sector includes commercial banks and rural and community banks.

The non-bank financial sector corresponds to the financial institutions listed in the schedule to

the Financial Institutions (Non-Banking) Law, PNDCL 328.

1.6.2 Insurance and Pensions

The Pensions and Insurance section will handle policy and implementation activities on

pensions and insurance, including the Minister’s responsibilities under the new Pensions Act. 

1.6.3 Securities Industry 

The Securities Unit will be responsible for policy analysis and implementation of EMCB activities

regarding money and capital markets, pensions and Insurance. It will also advise on corporate

finance transactions involving government.

The Securities and Investment Management Section will cover all financial institutions

regulated by the Securities and Exchange Commission. They include:

1.6.3 Pensions and Insurance

The Pensions and Insurance section will handle policy and implementation activities on

pensions and insurance, including the Minister’s responsibilities under the new Pensions Act. 

DIRECTOR,

FINANCIAL SECTORDIVISION

BANKING & NON-BANKING FINANCIAL

INSTITUTIONS

INSURANCE ANDPENSIONS

CAPITAL MARKETMICROFINANCE,SME FINANCE &

INFORMAL SECTOR

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1.6.4 Development Finance

This Unit will advise the Minister on development finance schemes and monitor their

implementation. Such schemes include the Venture Capital Trust Fund, Export Development

and Investment Fund, loan guarantee schemes, the development finance activities of state-

owned/supported financial Institutions.

The Development Finance Section is expected to come up with new development finance

initiatives, include appropriate government interventions to facilitate the flow of financial

resources to the poor and SMEs.

1.7 KEY OBJECTIVES

Objective 1: To make the domestic financial sector the preferred source of finance for

Ghanaian companies.

Objective 2: To promote efficient savings mobilization.

Objective 3: To enhance the competitiveness of Ghanaian financial institutions within the

domestic, regional and global setting by creating a rating matrix to measure

annually, competitiveness within financial institutions.

Objective 4: To ensure a stronger and more facilitative regulatory regime with fewer non-

compliance cases year on year

Objective 5: To promote a diversified domestic financial sector within a competitive

environment by monitoring and reporting new financial products and

developments within the sector annually.

Objective 6: To promote financial education by holding financial literacy events quarterly and

undertake regular capacity building programs.