By Francis Kobena Tandoh
Advocates for Christ Ghana, a faith-based organization, has condemned the draft regulation on Non-Interest Banking guidelines by the Bank of Ghana (BoG), stating that the guidelines are not suitable for implementation, according to a memorandum released here.
The comment comes on the back of an invitation by the Central Bank for public comments on the “Exposure Draft: Guideline for the Regulation and Supervision of Non-Interest Banking.”
The faith-based organization disclosed that its position is informed strictly in constitutional order, regulatory coherence, prudential soundness, consumer protection, and public interest considerations, hence calls for the withdrawal of the draft regulations based on two issues.
According to the group, the draft contains what it describes as “multiple internal inconsistencies,” including conflicting hierarchies of applicable standards, inconsistent dispute-resolution pathways, unclear allocation of supervisory authority between BoG and internal committees, as well as declaration of prudential requirements equivalent to conventional banking without the necessary technical adaptations.
“Following a comprehensive clause-by-clause review and informed by both technical regulatory analysis and independent public-interest policy commentary, we conclude that the draft, in its current form, is not fit for implementation and that the draft should be withdrawn and reissued due to material contradictions, technical gaps, and prudential risks,” read the memorandum.
The group advised that any future reintroduction should be guided by constitutional balance and protecting the interests of consumers.
It added, “That any future framework for non-interest banking must be redesigned to ensure constitutional neutrality, equal consumer protection, supervisory clarity, devoid of regulatory arbitrage, and demonstrate economic justification.”
The faith-based group further urged the Bank of Ghana to communicate with clarity and transparency regarding its objectives, scope, and regulatory implications of the proposed framework. Enditem
Source: Ghana Eye Report
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