Ghana Financial Stability Project

The objective of the Financial Stability Project for Ghana is to support the recapitalization of viable banks and specialized deposit-taking institutions to contribute to financial stability. There are three components to the project, the first component being capitalization of fund A1 of Ghana financial stability fund. Component 1 will capitalize Fund A1 of the GFSF to support (alongside shareholders) the recapitalization of viable banks and SDIs and contribute to financial stability. The second component is the technical assistance. This component will finance technical assistance to improve BoG’s assessment of banking sector risks and inform the development of appropriate remedies, enhance GDPC’s preparedness, complete due diligence of banks and SDIs, and build the E&S risk management capacity of banks and SDIs. Finally, the third component is the project management, monitoring and evaluation. This component will cover project implementation costs, including the compensation of an investment advisory firm, capacity building of FSD staff, coordination, procurement, financial management (FM), M&E, and other related costs. Specifically, it will cover consultants’ salaries and related expenses, operational costs, implementation of the Stakeholder Engagement Plan (SEP), data collection for M&E, and other project implementation expenses. Stakeholder engagement will entail the completion of annual surveys of beneficiaries (mainly banks and SDIs) to assess their satisfaction with the solvency support and technical assistance provided under the project and share lessons learned.