The Bank of Ghana (BoG) has announced that it has been recognized as a plenary member of the Central Banks and Supervisors Network for Greening the Financial System (NGFS)
The NGFS is a global group of central banks and financial sector supervisors formed in 2017 to help strengthen the global response required to meet the Paris Agreement’s goals, as well as to improve the role of the financial system in risk management and capital mobilization for green and low-carbon investments in the context of environmentally sustainable development.
According to a statement from the Bank of Ghana, it is one of the 105 NGFS member institutions, including seven other African central banks/supervisory bodies (BCEAO, Egypt, Mauritius, Morocco, Tunisia, Seychelles, and South Africa)
The NGFS, in a statement, praised the Bank of Ghana’s efforts to reduce financial risks in Ghanaian banking. The NGFS also lauded the central bank for promoting and preserving financial stability as well as guaranteeing a secure payment system not just in Ghana but around the world. This, according to the NGFS, has aided in ensuring and spreading solid banking practices throughout the world.
“NGFS recognized the BoG’s commitment to addressing climate-related financial risk in the banking system, and notably, BoG’s involvement in the Sustainable Banking and Finance Network, as well as the publication of Bank of Ghana’s Sustainable Banking Principles and Sector Guidance Notes in November 2019, all of which will be of great value in supporting the work of the NGFS.”
NGFS
Additionally, the statement also acknowledged that the Network For Greening The Financial System will give the Bank of Ghana a unique platform to better its working practices in Ghana and the international front too as well.
“Its membership of the NGFS as a strategic opportunity to enhance its work in helping to promote a more sustainable and resilient financial system and economy in Ghana and looks forward to working with other members to promote global efforts in that regard”.
NGFS
BoG’s membership of Basel Consultative Group (BCG)
The Bank of Ghana earlier this year announced that it has recently been admitted as a member of the Basel Consultative Group (BCG). This makes Ghana one of four African countries to join the BCG (the others being Tunisia, Mauritius, and Nigeria).
The Central bank also added that The BoG’s membership of the Basel Consultative Group will increase the exposure of its banking supervisory staff to best practices in the supervision of banks, and strengthen its cooperation with other supervisory authorities around the world.
The BCG is one of five working groups that form the internal structure of the Basel Committee for Banking Supervision (BCBS), the global standards setting body for the supervision of banks. As membership of the BCBS is limited to G20 countries, the BCG provides a platform for the Basel Committee for Banking Supervision to engage with non-members, thereby, facilitating broader dialogue around the work with banking supervisory authorities such as the Bank of Ghana and promoting supervisory cooperation and implementing supervisory standards and best practices. Its main mandate is to ensure sound banking practices and sound payment systems in the world.
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