![\"\"](\"http:\/\/www.ghanamma.net\/wp-content\/uploads\/2011\/11\/b144Amissah-Arthur1.jpg\" "\\"Amissah-Arthur1\\"")
<\/a>The Bank of Ghana has described as erroneous, suggestions from a section of the country\u2019s banking community that its new recapitalisation directives\u00a0 could\u00a0 lead to Ghanaian banks being taken over by foreign interests.<\/p>\nWhile registering the bank\u2019s commitment to the GH\u00a260 million recapitalisation for all banks by the December 2012 deadline, the BoG Governor, Mr Kwesi Bekoe Amissah-Arthur, said \u201cthe Central Bank believes in positive discrimination\u201d and will therefore not undertake policies that seek to reduce local participation in the banking\u00a0 sector.<\/p>\n
Mr Amissah-Arthur who made the comments at this year\u2019s annual bankers\u2019 dinner in Accra said BoG\u2019s policies on banking \u201cseek to support and enhance domestic participation in the business of banking\u201d.<\/p>\n
\u201cViable domestic ownership is critical to the long-term sustainability of our banking system,\u201d the governor said but noted that BoG would continue in its bid to recapitalise local banks to the new minimum capital.<\/p>\n
The Central Bank in 2008, issued a new directive that mandated all banks operating in the country to raise their respective minimum capital to GH\u00a260 million.<\/p>\n
Although foreign owned banks were given a one year period within which to meet the directive, domestically controlled banks were expected to recapitalise to GH\u00a225 million by December 2010 and subsequently reach the GH\u00a260 million by December 2012.<\/p>\n
The directive has, however, not gone down well with the local banks with some insisting that the new recapitalisation directive was forcing all banks to be big despite some wanting to remain small to serve the underprivileged business community.<\/p>\n
Such an argument, according to Governor Amissah-Arthur, are \u201cerroneous\u201d. The notion that \u201cthe insistence on minimum capitalisation (by BoG) forces homogenous sizing is erroneous,\u201d the governor said adding that events on the global scene made it impossible for Ghanaian banks to act \u2018local\u2019 by holding back external influences.<\/p>\n
\u201cWe must recognise that global competition is forced on us by technology and the search for yield. Thus it is impractical to seek to remain parochial,\u201d the Governor stressed.<\/p>\n
For local banks that are yet to recapitalise to the GH\u00a260 million, Mr Amissah-Arthur emphasised that \u201cthe December 2012 deadline\u00a0 for achieving the minimum capitalisation is binding.\u201d<\/p>\n
As a result, he said \u201cbanks must recapitalise to the required level by that date or risk the withdrawal of their licenses or re-categorisation with attendant loss of benefits.\u201d<\/p>\n
That notwithstanding, Mr Amissah-Arthur said capital-deficient banks that list on the stock exchange \u201cwill be considered to be in material compliance with the minimum capital requirement.\u201d<\/p>\n
Such a move, he said, was part of efforts by the Central Bank aimed at getting all banks listed on the Ghana Stock Exchange (GSE) so as \u201cto retain a minimum level of a Ghanaian character of our banking system.\u201d<\/p>\n
And to show the Central Bank\u2019s commitment to ensuring that all banks were listed, the Governor said \u201cBoG will float its shares in the Agricultural Development Bank (ADB) on the GSE as soon as ADB completes the process of converting from a statutory corporation to one operating under the Company Code.\u201d<\/p>\n
Source: Daily Graphic<\/p>\n
Comments<\/h4><\/p>\n","protected":false},"excerpt":{"rendered":"
You Are Here: Home \u00bb Investment , Second Lead \u00bb Recapitalisation will not lead to takeovers \u2013 Bank of Ghana Page last updated at Wednesday, November 30, 2011 12:12 PM \/\/ The Bank of Ghana has described as erroneous, suggestions from a section of the country\u2019s banking community that its new recapitalisation directives\u00a0 could\u00a0 lead to Ghanaian banks being taken over by foreign interests. While registering the bank\u2019s commitment to the GH\u00a260 million recapitalisation for all banks by the December 2012 deadline, the BoG Governor, Mr Kwesi Bekoe Amissah-Arthur, said \u201cthe Central Bank believes in positive discrimination\u201d and will therefore not undertake policies that seek to reduce local participation in the banking\u00a0 sector. Mr Amissah-Arthur who made the comments at this year\u2019s annual bankers\u2019 dinner in Accra said BoG\u2019s policies on banking \u201cseek to support and enhance domestic participation in the business of banking\u201d. <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-3003","post","type-post","status-publish","format-standard"],"yoast_head":"\n
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While registering the bank\u2019s commitment to the GH\u00a260 million recapitalisation for all banks by the December 2012 deadline, the BoG Governor, Mr Kwesi Bekoe Amissah-Arthur, said \u201cthe Central Bank believes in positive discrimination\u201d and will therefore not undertake policies that seek to reduce local participation in the banking\u00a0 sector. 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