Ghana President Akufo-Addo has established two major councils that will offer independent advice on fiscal responsibility and ensure the stability of the entire financial system.
The two Councils are the Fiscal Responsibility Advisory Council (Fiscal Council) and the Financial Stability Advisory Council (Financial Stability Council).
Both Councils are made up of seven members each, the latter’s members being institutional representatives.
Among its many functions, the FSC, which brings together all the different regulatory agencies in the financial services sector, will identify and evaluate the threats, vulnerabilities, and risks to the stability of the financial sector, ensuring that early-warning of cross-industry exposures that pose systemic risks are received and appropriate measures are deployed to manage them.
The FC also has, as one of its functions, a mandate to “develop and recommend to the President fiscal responsibility policies for the maintenance of prudent and sustainable levels of public debt. It is also to ensure that the fiscal balance is maintained at a sustainable level, and the management of fiscal risks in a prudent manner, to achieve efficiency, effectiveness and value for money in public expenditure.
The term of the members of each Council shall lapse with the term of the President under whom he/she is appointed unless he/she resigns or is otherwise terminated/terminates before then.