The Bank of Ghana has warned that weak legal documentation and poor risk management could threaten confidence in Ghana’s financial markets.
First Deputy Governor Zakari Mumuni said financial institutions must strengthen their systems as market transactions become more complex.
Dr. Mumuni made the remarks at the BoG and Frontclear Market Training Workshop in Accra.
The workshop focused on repo guidelines, Global Master Repurchase Agreement (GMRA), and ISDA documentation.
Participants included officials from commercial banks, treasury departments, legal teams, the Ghana Fixed Income Market, and the Ghana Securities Industry Association.
“The integrity of Ghana’s financial markets cannot rest on informal conventions or ambiguous documentation,” Dr. Mumuni said.
According to him, Ghana’s growing fixed-income market requires stronger legal frameworks and better operational controls.
He said institutions must improve internal systems, legal understanding, and risk management practices.
“Growth at this pace must be matched by investment in market infrastructure, legal literacy, and risk culture,” he stated.
Dr. Mumuni explained that repo markets now play a major role in liquidity management and monetary policy.
He said the Global Master Repurchase Agreement helps reduce legal uncertainty in financial transactions.
The agreement clearly defines default procedures, margin rules, and counterparty responsibilities.
He also highlighted the role of ISDA documentation in derivatives trading.
According to him, the framework helps institutions manage collateral, payment obligations, and default risks.
The Deputy Governor urged stronger coordination between treasury, legal, operations, and risk management teams within banks.
“A sound financial transaction demands strong coordination across the front office, risk management, legal, operations, and senior management,” he said.
He encouraged financial institutions to improve operational readiness and strengthen resilience in Ghana’s financial sector.
The Bank of Ghana says it will continue working with stakeholders and international partners, including Frontclear, to deepen market confidence and liquidity.
