The First Deputy Governor of the Bank of Ghana (BoG), Dr Zakari Mumuni, has called for stronger legal and operational frameworks to support Ghana’s rapidly expanding financial markets, warning that trading volumes alone cannot guarantee stability without equally robust systems governing risk, documentation and legal certainty.
Mumuni delivered the remarks at the Bank of Ghana and Frontclear Market Training Workshop on Repo Guidelines, Global Master Repurchase Agreement (GMRA) and International Swaps and Derivatives Association (ISDA) documentation for 2026, where he outlined the foundational role repurchase agreements (repos) play in modern financial systems.
He explained that repo transactions allow market participants to efficiently mobilise securities as collateral, improve liquidity conditions and enhance the transmission of monetary policy across the economy. He stressed, however, that those benefits are fully realised only when participants have a clear understanding of their legal obligations and operational risks, warning that without such clarity, even active markets can become fragile under financial stress.
Mumuni identified the GMRA as the global legal backbone of repo transactions, noting that it defines counterparty rights and obligations with precision and establishes clear procedures for default management, margining and close-out netting. He said the adoption of such international standards is essential for deepening Ghana’s financial markets and aligning them with global best practice.
On derivatives markets, the First Deputy Governor said ISDA agreements provide the contractual foundation for hedging instruments, covering payment obligations, collateral arrangements, default events and close-out netting. He added that strong derivatives frameworks enable institutions to manage risk exposure more effectively and contribute to broader financial stability.
While acknowledging that Ghana’s financial markets are evolving rapidly, with a growing fixed-income sector and an expanding pool of financial professionals, Mumuni cautioned that growth without deliberate investment in legal literacy and risk management frameworks could expose the system to avoidable vulnerabilities.
He described Treasury, Risk, Legal and Operational functions within financial institutions as a “critical tripod” of market integrity, stressing that weakness in any one area can compromise the entire system. The First Deputy Governor reaffirmed the BoG’s commitment to strengthening financial market infrastructure and deepening liquidity, while commending Frontclear and ACI Ghana for their continued support of capacity building and market development.
