The Bank of Ghana (BoG) has warned that weak legal documentation and poor risk management practices could undermine confidence in Ghana’s growing financial markets if urgent steps are not taken to strengthen market systems.

First Deputy Governor of the Bank of Ghana, Dr. Zakari Mumuni, says the country’s financial sector can no longer rely on informal arrangements as market transactions become more sophisticated and complex.

Speaking at the BOG/Frontclear Market Training Workshop on Repo Guidelines, Global Master Repurchase Agreement (GMRA), and ISDA Documentation in Accra, Dr. Mumuni stressed that legal certainty and operational discipline are now central to maintaining stability in the financial system.

“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 stated.

The workshop brought together officials from commercial banks, treasury departments, legal and risk teams, the Ghana Fixed Income Market, Central Securities Depository and the Ghana Securities Industry Association to build capacity in global financial market standards.

Dr. Mumuni explained that as Ghana’s fixed-income market expands and attracts more sophisticated instruments, institutions must equally strengthen their internal controls, legal frameworks and risk culture.

“Growth at this pace must be matched by a corresponding investment in market infrastructure, legal literacy, and risk culture,” he warned.

He noted that repo markets have become essential in supporting liquidity management and monetary policy implementation, but said the benefits can only be realised when financial institutions clearly understand their obligations and counterparty risks.

According to him, the Global Master Repurchase Agreement, known as GMRA, helps reduce legal uncertainty by clearly outlining default procedures, margin requirements and counterparty responsibilities.

“GMRA provides an internationally recognised legal backbone for repo transactions,” he said.

Dr. Mumuni also highlighted the importance of ISDA documentation in derivatives trading, saying the framework helps institutions manage payment obligations, collateral arrangements and default events effectively.

The Deputy Governor further called for stronger coordination between treasury, legal, risk management and operations departments within banks and financial institutions.

“A sound financial transaction demands strong coordination across the front office, risk management, legal, operations, and senior management,” he stressed.

He encouraged participants to openly discuss issues around collateral management, close-out netting and operational readiness to improve resilience within Ghana’s financial markets.

The Bank of Ghana says it will continue working with market stakeholders and international partners including Frontclear to deepen liquidity and strengthen confidence in the country’s financial system.