Banks position themselves for recapitalization

Commercial banks across the country are confident of meeting the new minimum capital requirement yet to be set by the Bank of Ghana (BoG).

The BOG last year disclosed that it will give commercial banks some space to meet a new capital reserve ratio.

The figure is expected to go up from the current 120 million cedis.

The Chartered Institute of Bankers [CIB] however expressed concern that the possible increase in the minimum capital for commercial banks in the country will affect banks that focus only on particular categories of customers.

The Institute however believed that an upward adjustment of the minimum capital requirement will enable the banks undertake large scale projects and boost economic growth through the provision of jobs.

However commenting on the matter, the Managing Director of Capital Bank FitzGerald Odonkor told Citi Business News the recapitalization is less likely to affect his outfit.

“There has been quite a bit of discussion about the increase in the minimum capital requirement for banks in Ghana so it has not come as a surprise. We have put in place measures that will help us to be able to meet this requirement within the time frame the Central bank is going to offer us.” he said.

He admitted that the decision by the industry regulator has compelled his outfit to seek for more investors to ensure the constant operations of the bank.

“I think that it is part of the strategy of the bank. The most important thing is that it is going to be a combination of getting new investors and getting existing shareholders to bring in more competition.”

Banking Consultant, Nana Otuo Acheampong has strongly advocated economic other than regulatory minimum capital requirement.

He argues adhering to such should protect some ‘smaller’ banks from a likely collapse over their inability to meet the increased capital requirements to be fixed by the Bank of Ghana.

By: Jessica Ayorkor Aryee/citibusinessnews.com/Ghana.

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