Business News of Monday, 26 November 2018
The Bank of Ghana has stated that the deadline for banks to meet the GHC400m minimum capital requirements remains unchanged stressing that they need to meet the requirement within the next six weeks as the year gradually comes to an end.
Governor of the Central Bank, Dr. Ernest Addison while addressing the media said BoG has closely been monitoring and working with the banks towards their recapitalisation efforts.
According to him, BoG is happy to announce that many banks are close to meeting the new minimum capital requirement and a few are concluding discussions on mergers.
“We will communicate the outcome when the exercise is completed. We expect 2019 to commence with a well-capitalised and robust banking system with no weak institutions’’, Dr Addison stated.
The Central Bank increased the minimum capital requirement for banks from GH¢120 to GH¢400 million to improve stability in the banking industry whilst growing the industry.
Analysts and market watchers believe few but larger banks will help accelerate the country’s economic growth quickly since they can underwrite big-ticket transactions as well as remain liquid and stronger.
The few but stronger banks they believe will also help to reduce cost of credit, access to credit, non-performing loans, amongst others.
Bank of Ghana further said they are monitoring the Savings and Loans and MFIs sector stating that the central bank is aware of the pockets of distressed institutions in the sector.
“We are working closely with the Ministry of Finance on a plan to resolve these problems in the sector with a view to restoring trust and confidence”.