A technical mission from the International Monetary Fund has called on the Bank of Ghana (BoG) to carry out regular assessments of the systemic importance of banks in Ghana and make the findings public.
In its report, the IMF said Ghana’s Domestic Systemically Important Bank (D-SIB) framework should include an annual review of designated banks, along with their Higher Loss Absorbency (HLA) requirements. This review, it noted, should be completed by a fixed date each year to ensure consistency and accountability.
After each assessment, the central bank is expected to formally confirm its decisions, notify the affected institutions, and publish the list of D-SIBs together with their corresponding capital requirements. The IMF stressed that such disclosure would strengthen transparency and market confidence.
The report also recommended that the BoG publish clear details on how these assessments are conducted, including the methodology used to identify systemically important banks and determine their HLA levels. This should also reflect the role of supervisory judgment in the process.
Beyond identification, the IMF emphasised that the D-SIB framework must be closely aligned with the central bank’s supervisory and resolution functions. It described the framework as part of a broader strategy built on three pillars: stronger loss-absorbing capacity, more intensive supervision, and improved resolution planning.
According to the mission, insights from identifying systemically important banks should directly shape the BoG’s supervisory priorities. It added that the Bank’s existing collaboration across departments should be expanded to fully integrate D-SIB considerations into supervision, resolution, and macroprudential oversight.
The IMF concluded that ongoing efforts to strengthen risk-based and consolidated supervision must take into account the risks posed by these key institutions. It also urged the BoG to prioritise recovery and resolution planning for all designated banks, noting that a bank’s ability to be effectively resolved should, where relevant, be factored into its systemic importance assessment.