President Nana Akufo-Addo of Ghana has charged a newly inaugurated Financial Stability Advisory Council to assist government in ensuring that the country’s banking sector does not return to crisis again.
Addressing members of the Council at the Jubilee House in Accra after administering the Official Oath of Secrecy to them, Akufo-Addo said weakness in the banking system undermines confidence in the flow of funds in the country.
“We asked ourselves, why did it take so long to recognize these problems and to deal with them in order to safeguard the public interest. Was this a system’s failure, or these banks were simply clever in going about their businesses on the blind side of regulators?” he asked.
“A financial system in distress introduces uncertainty in the economy and undermines the stability and soundness of the financial system. It is to prevent any disastrous occurrence in the banking system and its ramifications in the entire financial system that my government has taken the bold step to establish the Presidential Financial Stability Advisory Council,” Mr. Akufo-Addo added.
Role of the Advisory Council
The role of the Presidential Financial Stability Advisory Council, according to the President, will be to advise the President on how to strengthen and reinforce the stability of the financial sector acting as an inter-institutional consultative coordinating body and; coordinate regulation supervision at the micro level by focusing on matters of common concern for the various financial regulators involved in the regulations.
Others are supervision of financial entities in Ghana namely, the Bank of Ghana, Securities and Exchange Commission, National Insurance Commission, and the National Pensions Regulatory Authority and to evaluate and mitigate financial stability risk by focusing on the timely detection and mitigation of risk in the stability of Ghana’s financial system.”