BoG to provide governance framework for banks, FinTechs in BSB project
The Bank of Ghana (BoG) in partnership with the Monetary Authority of Singapore (MAS) are planning to create a governance framework and digital infrastructure for banks and FinTech companies in Ghana and Singapore.
The governance framework and digital infrastructure to be enabled with the creation of the Financial Trust Corridor (FTC), will be a dedicated ecosystem for mutual recognition and closer relationships between businesses, including SMEs, and financial institutions on the Business Sans Borders (BSB) platform to be created by the BoG and MAS.
Making the disclosure at the BSB Stakeholder Engagement Forum on Wednesday, Governor of the Central Bank, Dr Ernest Addison, noted that with creation of the FTC, businesses can refer to and utilise key information available on the platform for credit assessment, whilst adhering to domestic and international regulations, including data protection and Anti-Money Laundering requirements.
“Participating business particularly SMEs will have the trust of financial institutions, leading to the much needed financial sector support for SMEs growth,” added the Governor.
Speaking further on the BSB initiative, Dr Ernest Addison stated that with the full implementation of the BSB initiative, Ghanaian SMEs will be able to access diversified trade opportunities as well as critical, quality ecosystem facilities such as finance, accounting, and business referrals with Singapore.
The objective of the BSB project, according to the Governor, is to collaborate and leverage the capabilities of digital technology to expand the frontiers of businesses, especially Small and Medium-sized Enterprises (SMEs) in Ghana and Singapore.
Touching on the subject of the African Continental Free Trade Agreement (AfCFTA), the Governor noted the BSB project holds enormous benefit for the trade pact and the continent at large.
“As the host country of the African Continental Free Trade Area (AfCFTA), Ghana is also expected to play a leadership role in improving the international trade fortunes of the Continent. Therefore, the BSB project provides another important platform towards this regional aspiration as the lessons to be learnt can be valuable to AfCFTA’s project on internationalization of SMEs,” he stated.