International Journal of Economics, Commerce and Management United Kingdom Vol. III, Issue 5, May 2015 Licensed under Creative Common Page 1043 http://ijecm.co.uk/ ISSN 2348 0386 FINANCIAL SECTOR REGULATORY AND SUPERVISORY FRAMEWORK IN GHANA Mohammed Inusah ABDALLAH Lecturer, Department of Accountancy, Tamale Polytechnic, Tamale, Ghana alhajiminusah@gmail.com Abstract The development and expansion of the financial sector of every nation largely depends on the regulatory and supervisory framework underlying the sector. After the 2007-2009 financial crisis, several forms of regulation have been instituted in many countries including Ghana to protect the financial environment from illegal dealings and transactions. This study examines the regulatory and supervisory framework of the financial sector in Ghana highlighting the strengths, weaknesses, opportunities and threats. In Ghana, sustained financial sector restructuring and transformation has succeeded in creating a vibrant financial system in the sub region. Ghana’s financial system has undergone rapid growth and major structural transformation over decades, which has brought new opportunities and risks. Banks in Ghana are now in a position to effectively play active role as financial intermediaries. The authorities have been implementing reforms to strengthen the regulatory and supervisory framework and financial infrastructures. However, there remain cross-cutting challenges that need to be addressed. It is recommended that the Bank of Ghana, as the central bank with an overall supervisory and regulatory authority in all matters relating to banking business in Ghana, continues to ensure a sound, competitive and efficient financial system. Keywords: Financial sector, Regulation, Financial system, Restructuring, Bank of Ghana INTRODUCTION Financial development requires an enabling environment for it to thrive. The probability that a country will suffer a banking crisis depends on global factors, contagion factors, and domestic factors (Forbes and Warnock, 2012 and IMF, 2013). The recent global financial crisis has prompted a renewed interest in banking regulation and supervision to safeguard global financial systems. As a result, a number of reforms of the financial regulatory framework have been