PwC survey shows that banking sector receives GH¢1.5 billion fresh capital injection

A PwC survey has shown has indicated that the banking sector received about GH¢1.5 billion in fresh capital in 2018 when banks moved to meet the Bank of Ghana’s December 31, 2018 deadline to meet the minimum capital requirement.

Dr Ernest Addison, Bank of Ghana Governor

The BoG’s directive to the banks gave three sources of meeting the GH¢400 million minimum capital requirement. The banks could seek fresh capital, capitalized from their reserves or a combination of the two sources.

But the 2019 PwC Banking Survey showed that banks injected GH¢1.5 billion of fresh capital into their operations to meet the BoG directive.

“Sources of fresh capital injection included equity from parent companies as well as funds from other private investors. Some banks refrained from paying their shareholders dividend for the year to shore up their reserves to meet the GH¢400 million requirement,” the survey said.

The research showed that 36% of bank executives interviewed said that they had secured the minimum capital through a mixture of reserves and injection of fresh capital. Meanwhile, 18% secured it through fresh capital injection only.


The PwC survey spoke to bank executives – Chief Executive Officers, Chief Finance Officers, Chief Risk Officers, Chief Operation Officers and Heads of Strategy in Ghana through interviews and questionnaires carefully designed to elicit views on the impact of the central bank’s reforms on their business.

According to some bank executives, the increase in stated minimum capital is necessary and crucial in unlocking opportunities for players in the sector. They believe that now, banks have a level playing field and are in a position to partake in bigger ticket transactions that hitherto were not possible or were the preserve of a few international banks. An example is government syndicated loans.


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