The Bank of Ghana Governor, Dr. Ernest Addison, has emphasised the need for regulators to stay ahead of the curve in financial market innovations, ensuring that regulations are effective and responsive to emerging trends and technologies.
“Effective legal frameworks help prevent abuses and increase consumer trust,” Mr. Opata said. “Regulators must stay ahead of the curve to maintain a resilient and well-governed financial system.”
Delivering remarks on behalf of Bank of Ghana Governor Dr. Ernest Addison, advisor Stephen Opata emphasised the vital need for robust legal capacity among regulators.
“The need for robust, informed and adaptive regulatory practices is more apparent than ever,” Mr. Opata stated. “Regulators with a comprehensive grasp of legal principles are better equipped to formulate effective, clear and enforceable regulations.”
Mr. Opata pointed to the 2008 global financial crisis as a stark reminder of the consequences of inadequate oversight. “Banks and financial institutions around the globe faltered, economies tumbled – and it was clear that a lack of understanding and proper implementation of banking regulations had profound effects and far-reaching consequences.”
He highlighted six key areas where strong legal foundations are essential: ensuring compliance, formulating regulations, promoting financial stability, protecting consumers, facilitating international cooperation and adapting to technological change.
“Regulators need to continuously build their legal capacity to address challenges posed by emerging technologies, ensuring regulation keeps pace with innovation without hindering progress,” Mr. Opata stated.
Amadou Koura, representing the Director-General of WAIFEM, echoed the training’s importance. “It is essential to mention that this course is meticulously crafted to enhance understanding of the legal framework in central banking, central bank independence, bank regulation, and resolution issues and challenges,” he said.
Mr. Koura outlined the comprehensive curriculum covering legal issues relevant to regulation, supervision, resolution, crisis management and adopting international best practices. “The broad themes include bank regulation after the financial crisis, legal underpinning of central bank governance, bank prudential regulation and latest developments,” he explained.
Both speakers commended the longstanding partnership between WAIFEM and the IMF in delivering vital capacity building programmes across West Africa. “We express our sincere gratitude to facilitators from the IMF who have travelled to share their invaluable expertise,” said Mr. Koura.
Mr. Opata added: “I’m confident greater light and insight will be shared by IMF experts to enhance the effectiveness and responsiveness of regulatory frameworks in our member countries”.
Joanna Grosalka, Gerard Lederer and Marco Bazzanti from IMF headquarters are facilitating the intensive 5-day regional training. Participants from central banks and regulatory bodies across the region are attending to deepen their understanding of the evolving legal landscape.
“Your presence underscores your commitment to professional development and enhancing staff skills for understanding the key legal principles that underpin bank regulation,” Mr. Koura told the participants.
As financial innovation accelerates with fintech, digital currencies and other advances, regulators are urged to proactively bolster their legal foundations to address emerging risks and opportunities.