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Capital Requirement BoG to take final decision on struggling local banks in July

Sources indicate that even though the banks in Ghana have until December 3, 2018, to meet the 400 million cedis capital requirement, the BoG has plans to force mergers among some indigenous banks.

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The Bank of Ghana (BoG) is expected to take a final decision on the fate of local banks that may not meet the capital requirement by July.

The Governor of the Bank of Ghana (BoG) Dr Ernest Addison was speaking to the media at the presentation of the policy rate.

He said the plans for the banks struggling to meet its minimum capital requirement at its next Monetary Policy Committee (MPC) meeting slated for 23rd July.

READ ALSO: Work without fear or favour - President tells BoG

Dr Addison added that this will be the last opportunity given to the indigenous banks to convince the Central Bank on plans to meet the requirement, failure to do so will trigger options available.

“We already know what the options are. Let’s wait for the next MPC meeting. We will get a clearer view of which banks will be able to meet the targets that we have set and those banks that cannot.”

“Any decisions that we will take our decisions based on where we as a country want to go. As you can see the discussions are ongoing. As I said, we expect the committee to come with a report on the things the government can do to support indigenous banks by the next MPC meeting,” he added.

Sources indicate that even though the banks in Ghana have until December 3, 2018, to meet the 400 million cedis capital requirement, the BoG has plans to force mergers among some indigenous banks.

READ ALSO: Oil is Ghana’s second largest export earner – BoG report

Dr. Addison insisted that the local banks must be ready to consider options outlined by the BoG to strengthen the financial space.

He, however, assured that the central bank will work to strengthen the participation of local banks in the economy.

Some local banks in April 2018 appealed to the president to extend the deadline of meeting the capital requirement.

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