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 i. ii. iii. iv. v. 1.1.2 i. ii. iii. Weaknesses Lack of very strong and dependable teamwork; Lack of key software for analysis and data capturing by Division (Bloomberg); Low and inexperienced staff; Low staff remuneration; and Lack of publicity and information about the existence of the Division. Opportunities Ongoing Projects within the Sector; Development of a database on all financial sector information; and Access to free research on best practices from the internet and other financial sector publications. Threats Delays in the submission of reports by Regulatory Agencies; Possible confliction of work with other regulatory bodies; Informal sector not captured under any comprehensive legislation; and Possible disagreements on the divisions quest to realign certain functions of some regulators. VISION

1.1.4 i. ii. iii. iv.

1.2

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.

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 I.

TERMS OF REFERENCE Policy analysis on Ghanas 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. Periodic round table with key players of financial industry and publish a periodic report on financial sector developments for both internal and external dissemination; 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; Investor Related Issues; Any other functions that will be assigned to the division;

II. III.

IV. V.

1.5

FSD STRUCTURE

DIRECTOR, FINANCIAL SECTOR DIVISION

BANKING & NONBANKING FINANCIAL INSTITUTIONS

INSURANCE AND PENSIONS

CAPITAL MARKET

MICROFINANCE, SME FINANCE & INFORMAL SECTOR

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 Ministers 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 Ministers responsibilities under the new Pensions Act.

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 stateowned/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 To make the domestic financial sector the preferred source of finance for Ghanaian companies. To promote efficient savings mobilization. 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. To ensure a stronger and more facilitative regulatory regime with fewer noncompliance cases year on year To promote a diversified domestic financial sector within a competitive environment by monitoring and reporting new financial products and developments within the sector annually. To promote financial education by holding financial literacy events quarterly and undertake regular capacity building programs.

Objective 1: Objective 2: Objective 3:

Objective 4: Objective 5:

Objective 6: