Banks operating in Ghana will be expected to set aside $90 million as the minimum capital requirement.
The minimum capital requirement is the amount a bank must hold in order to operate.
The Bank of Ghana’s (BoG) primary concern is that there is sufficient capital to buffer a bank against large losses so that deposits are not at risk, with the possibility of further disruption in the financial system being minimized.
This is an increase of 233.3 percent from the previous 27 million dollars.
The last time the central bank increased the capital requirement of banks was in 2012 when it was increased from 14 million dollars to 27 million dollars..
The Governor of BoG, Dr Ernest Addison announced the new figure to the Chief Executives of banks on Friday, September 8, 2017.
The banks will be given until December 2018 to meet the new requirement.
This is coming after two indigenous banks (UT and Capital Banks) collapsed and was subsequently taken over by GCB Bank.
Ghana currently has about 31 banks operating. Banking analysts have said that this is too high for Ghana’s economy and population.
The analysts believe this may compel some banks that cannot meet the requirement to merge and reduce the number of banks in the country.