Government of Ghana denies playing major role in supporting some five banks to reach recapitalization target

January 10, 2019 1:17 PM

Ghana’s central bank, the Bank of Ghana (BoG), has denied playing any direct role in supporting some five banks to meet the recapitalization requirement policy it levied on the banks in the country.

Dr Ernest Addison, Bank of Ghana Governor

According to the central bank, the support that the five banks received to meet the recapitalization requirement was done solely by the Ghana Amalgamated Trust (GAT) company limited.

The GAT is a private pension fund company in the country.

The company injected GH¢2 billion into supporting the solvent and well-run indigenous banks, which were otherwise having difficulties meeting the new minimum capital requirement of $83 million.

The central bank came under heavy accusation for eliminating some local banks from benefiting under the scheme following the announcement of the package on January 4, 2018.

The Governor of the Central Bank, Dr Ernest Addison has hence disclosed that the bank no direct role in the selection process.

He said, “We have not played a direct role but we supported the initiative.”

The bank ended the recapitalisation exercise at the close of business on December 31, 2018. 23 banks out of 36 have so far met the requirement.