- BoG Says Ghana’s Markets Need Stronger Rules, Not Just Bigger Volumes
The Bank of Ghana has called for stronger legal, operational and risk-management frameworks to support the continued expansion of Ghana’s financial markets, warning that market growth without legal certainty could expose institutions to avoidable systemic risks.
Speaking at the 2026 Bank of Ghana–Frontclear market training workshop on repo guidelines, Global Master Repurchase Agreement documentation and International Swaps and Derivatives Association standards, First Deputy Governor Dr. Zakari Mumuni said Ghana’s markets must now move beyond rising activity to deeper institutional resilience.
“A financial market is only as strong as the legal and operational infrastructure beneath it,” Dr. Mumuni said in his welcome address. “Volumes tell you how active a market is — documentation, risk frameworks, and legal certainty tell you how safe it is.”
The workshop, held at the Bank of Ghana head office, brought together Frontclear, ACI Ghana, the Ghana Fixed Income Market, the Central Securities Depository, the Ghana Securities Industry Association and representatives of commercial banks.
Dr. Mumuni said the training was timely because Ghana’s financial markets were evolving rapidly, with an expanded fixed-income market attracting new professionals and increasingly sophisticated instruments. He cautioned that such growth must be matched by investment in market infrastructure, legal literacy and risk culture.
According to him, a well-functioning repo market is a critical part of a modern financial system because it supports short-term funding, liquidity management, efficient use of securities as collateral and stronger monetary policy transmission. But those benefits, he said, can only be realised where market participants understand the rules, legal obligations and operational risks involved.
The Bank of Ghana’s renewed emphasis on repo and derivatives documentation comes as Ghana seeks to deepen domestic capital markets, improve liquidity management and bring market practices closer to international standards.
Dr. Mumuni said the Global Master Repurchase Agreement provides an internationally recognised legal foundation for repo transactions by defining counterparty rights and obligations, while establishing mechanisms for default management, margining and close-out netting.
He added that ISDA documentation plays a similar role in derivatives markets, providing the contractual basis for hedging and risk management while addressing payment obligations, collateral arrangements, events of default and close-out netting.
The First Deputy Governor said the Bank had deliberately structured the programme to include treasury, risk and legal functions because sound financial transactions require coordination across front office, risk management, legal, operations and senior management teams.
“A sound financial transaction demands strong coordination across the front office, risk management, legal, operations, and senior management,” he said, describing the functions as “a critical tripod — no leg of which can be weak without compromising the whole.”
Dr. Mumuni urged participants to raise difficult questions around collateral management, legal enforceability, close-out netting, operational readiness and counterparty risk, noting that the true value of the training would depend on the quality of debate and the practical insights carried back to institutions.
He warned that Ghana’s financial market integrity could not depend on loose market customs or unclear documentation.
“The integrity of Ghana’s financial markets cannot rest on informal conventions or ambiguous documentation. It must rest on legally enforceable agreements, operationally sound processes, and professionals who understand precisely what they have signed,” he said.
The Bank of Ghana, he added, remains committed to working with market stakeholders to strengthen infrastructure, deepen liquidity and align Ghana’s standards with international best practice, while adapting those standards to the local market context.
