Be careful with cross-border lending, foreign currency exposures – BoG advises financial institutions

From 1st July 2027, the Bank of Ghana will begin the implementation of the Credit Risk Management Directive for all Banks, Savings and Loans, Finance Houses and Financial Holding Firms.

The advice is captured in the Credit Risk Management Directive for all Banks, Savings and Loans, Finance Houses and Financial Holding Firms.

The broad objective of the directive is to enhance the resilience of Regulated Financial Institutions (RFIs) by ensuring that they establish and fully implement adequate and effective credit risk management systems that commensurate with their risk-taking activities and capital strength.