The Bank of Ghana is developing a directive to manage interest rate risk in the banking book.
The swings in interest and inflation rates and the impact on mark-to-market instruments were major factors that led to the failure of some global banks in 2023.
The Central Bank indicated in its Financial Stability Review that the mark-to-market losses may have serious consequences for the safety and soundness of regulated financial institutions, including diminished confidence from investors and depositors, forced asset sales, and erroneous valuations.
The Central Bank also said it is also amending its Cyber and Information Security Directive in line with recent developments in the industry.
It added that the risks associated with cyber and information security have escalated.
This is because of the increased reliance and use of social networking, electronic products, digital payment system services, and IT-driven business operations.
Additionally, the digitalization of finance and technology-driven innovation have altered consumer behaviour as well as the delivery of banking services.
The Bank of Ghana also said it will review the current Cyber and Information Security Directive, leveraging the Basel amendments, to reflect new developments and customise it for adoption by the Specialised Deposit Taking Institutions.
Source: Business Analyst
