Ghana’s financial system is supervised by four independent regulators: the Bank of Ghana (BoG), the Securities and Exchange Commission (SEC), the National Insurance Commission (NIC), and the National Pensions Regulatory Authority (NPRA). Each is mandated to safeguard its sector, banking, capital markets, insurance, and pensions, respectively.

Despite this regulatory framework, Ghana has experienced significant financial instability in recent years. Between 2017 and 2019, over 420 financial institutions collapsed, costing the state more than GH¢21 billion in bailouts.

Pension funds have faced governance concerns, while the insurance market continues to struggle with undercapitalisation and credibility issues. These outcomes highlight systemic weaknesses: fragmented oversight, weak coordination, overlapping mandates, and insufficient accountability of regulators themselves.

To address these gaps, Ghana should establish a Financial Control Authority (FCA), a higher supervisory institution with the mandate to harmonise regulations, monitor systemic risks, and ensure accountability of the existing regulators. Comparative models, such as the UK’s Financial Conduct Authority and Prudential Regulation Authority, demonstrate that higher-level oversight strengthens investor confidence and reduces systemic risks.

By creating an FCA, Ghana can move toward a more resilient financial system, enhance investor trust, and prevent future crises.

Author:

Prof. Isaac Boadi

Dean, Faculty of Accounting and Finance, UPSA

Executive Director, Institute of Economic and Research Policy, IERPP