The Bank of Ghana (BOG) is developing a Business Model and Viability Analysis Framework to protect financial institutions from potential shocks resulting from the Domestic Debt Exchange Program according to the governor.
BOG Governor, Dr. Ernest Addison, has reaffirmed the Central Bank’s commitment to ensuring the financial stability of banks across the country.
Speaking at the Annual General Meeting of the Ghana Association of Banks, Governor Addison provided assurances that additional measures would be taken to facilitate banks in establishing sufficient capital buffers to sustain their operations.
The implementation of the Business Model and Viability Analysis Framework is the BOG’s proactive approach to safeguarding the health of the financial sector. This initiative aims to fortify financial institutions through an assurance that “banks hold adequate capital for all materials risks inherent.” the BoG boss said.
Dr. Addison’s address at the meeting further noted that the approach will allow for “enhanced supervisory practices in accessing the sustainability of banks’ business modules”.
He also mentioned that the Central Bank intends to “scale up the Regulatory Revolve Agenda through a series of engagements with the GAB”.