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10 banks in danger of not meeting BoG’s GH¢400m minimum capital

The Bank of Ghana has disclosed that 10 of those banks are currently struggling to meet the GH¢400 million minimum capital.

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About 10 banks are in danger of not meeting the minimum capital required to operate, the Bank of Ghana (BoG) has said.

All banks in the country have been given a December deadline to meet the BoG’s GH¢400 million minimum capital.

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This comes following a period of instability recorded in the financial sector in the last few months.

Earlier this year, the Central Bank took steps to dissolve five insolvent indigenous banks.

The said banks were subsequently merged to form the newly-established Consolidated Bank of Ghana Limited.

Among the merged banks were UniBank, Sovereign Bank, Beige Bank, Construction Bank and the Royal Bank.

Last week, the Central Bank followed up by publishing a list of banks in the country that are duly licensed to operate.

The BoG said, as of August 2018, only 31 banks in Ghana were duly licensed and in good standing to operate.

But speaking at the Finance forum in Accra on Thursday, 2nd Deputy Governor of the BoG, Elsie Awadzi, disclosed that 10 of those banks are currently struggling to meet the GH¢400 million minimum capital.

2nd Deputy Governor of the Central Bank, Elsie Awadzi play

2nd Deputy Governor of the Central Bank, Elsie Awadzi

 

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“Over 20 banks have met [minimum recapitalization] or are already there and we have 30 banks so the rest, we are meeting them on daily basis to say tell where you are on your capital raising plans.

“We are confident that they are going to meet [it] but if for some reason they cannot meet and will not merge, well then that is another matter altogether but we cannot allow banks that are not well capitalized to remain in the system after January 1,” she said.

Meanwhile, the Central Bank has previously warned that banks who fail to meet the GH¢400 million minimum capital will soon be sanctioned.

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