The Bank of Ghana has intensified efforts to deepen Ghana’s financial markets by training banks and market participants on the legal and operational frameworks underpinning repo and derivatives transactions.

Repo and derivatives markets remain foundational pillars of global financial liquidity and risk management.

Opening a one-day workshop in Accra on Repo Guidelines, the Global Master Repurchase Agreement (GMRA), and International Swaps and Derivatives Association (ISDA) documentation, First Deputy Governor Dr Zakari Mumuni said Ghana’s financial market development must be anchored on legal certainty and sound risk management.

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“A financial market is only as strong as the legal and operational infrastructure beneath it. Volumes tell you how active a market is; documentation, risk frameworks, and legal certainty tell you how safe it is,” Dr Mumuni said.

The workshop, organised by the Bank of Ghana in partnership with Frontclear, seeks to close the gap between rising market activity and the resilience required to sustain it.

Dr Mumuni noted that Ghana’s fixed-income market is expanding rapidly and attracting more sophisticated instruments and market participants.

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

He described the repo market as central to modern financial systems.

“A well-functioning repo market is a critical pillar of the modern financial system. It supports short-term funding and liquidity management, promotes the efficient use of securities as collateral, and strengthens monetary policy transmission,” he said.

Dr Mumuni explained that the GMRA provides the legal backbone for repo transactions, while ISDA documentation underpins derivatives trading and risk management frameworks.

The workshop brought together treasury, risk, and legal teams from financial institutions to strengthen cross-functional coordination.

“A sound financial transaction demands strong coordination across the front office, risk management, legal, operations, and senior management. These functions form a critical tripod, no leg of which can be weak without compromising the whole,” he said.

He urged participants to focus on practical issues including collateral management, legal enforceability, operational readiness, and counterparty risk.

“The value of this programme will be measured not by the presentations delivered, but by the quality of debate and the practical insights carried back to your institutions,” he noted.

Dr Mumuni stressed that Ghana’s financial markets can no longer rely on informal practices or weak documentation standards.

“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 declared.

He reaffirmed the Bank of Ghana’s commitment to strengthening market infrastructure, deepening liquidity, and aligning Ghana’s financial markets with international best practice.

MA