Banks in Ghana are expected to meet the central bank’s new minimum capital requirement within the next six weeks as the year ends.

The Bank of Ghana (BoG) have hence stated some nineteen banks who have so far met the requirement.

Nana Otuo Acheampong a banking expect revealed that, the banking sector will have less than 22 banks operating next year.

He stated that, the industry will be more vibrant if it had fewer but well capitalized banks operating in the system.

Nana Otuo Acheampong said, “We have been analyzing from our office here the financials that have been produced for 30th of September, 2018. So far out of the 23 or 24 we have examined more than 19 have met the minimum capital requirement, adding that, “But there are still the others who are yet to publish. I would however not be happy if all the remaining banks meet the requirement. We started with 36 and we should probably end up with about 20 or 22. If we are able to do this we would get the resilience in the sector that we expect.”

Mentioning some other countries as example, the Expect indicated that, Ghana can learn from West African countries such as Nigeria.

He said, “Nigeria started with 89 and they ended up with 22 or so. Malaysia started with 80 and ended up with 12. So if you ask me about my expectations, well I don’t expect us to end with the same number that we started with.”

Some banks who are seen to meet the requirement

Based on their shareholders’ funds, these banks are likely to meet the minimum capital requirement of GH¢400 million by the Bank of Ghana (BoG).

Ecobank - GH¢902 million

Ghana Commercial Bank (GCB) - GH¢1.05 billion

Barclays - GH¢979 million

Stanbic - GH¢889 million

Standard Chartered Bank - GH¢927 million

Fidelity Bank - GH¢500 million

Zenith Bank - GH¢702 million

National Investment Bank (NIB) - GH¢791 million

CAL Bank - GH¢622 million

Agric Development Bank (ADB) - GH¢507 million

Access Bank - GH¢467 million

UBA - GH¢498 million

Although the above banks are slated to meet the requirements, there are still some others who are yet to be announced.

Some other banks have merged to be able to as well meet the requirement.

Recapitalisation of banks

The Bank of Ghana has made some reforms in the banking sector to help in promoting the industry and eradicate some irregularities.

The banks are required to raise 400 million Cedis minimum capital before December 31st, 2018.

Since September 2017, commercial banks in the country have been racing against time to recapitalize.

The banks have resorted to various options such as fresh capital injection from shareholders, raising funds from the stock market or merging.

Twenty banks have so far met the requirement with the remaining working round the clock to beat the deadline.

The policy requires that, any bank which is unable to meet the capital level, will either lose its license or drop to a Savings and Loans category or may opt to completely fold up its business.