The BoG said  issuance of licences to new universal banks, savings and loans companies or microfinance institutions will be banned in 2018.

READ ALSO: Bank of Ghana pegs minimum capital requirement from commercial banks at $90m

According to the Governor of BoG, Dr Ernest Addison, the measure would help facilitate the full implementation of the recapitalisation process and also ensure solvency of banks and stability in the banking industry by the end of the reforms.

Speaking at the launch of The BEIGE Bank (TBB) in Accra, he said "The central bank is considering not licensing new universal banks or savings and loans companies or microfinance institutions in the country next year as we implement the recapitalisation process.

"The Bank of Ghana will introduce a new licensing regime that will align with the overall financial sector landscape to deliver a strong, solid, well capitalized, and geographically diversed financial landscape. That is the vision to support the government’s transformational agenda."

The BoG would also introduce a new licensing regime to enable the financial services sector to deliver a strong and well-capitalised financial system that was positioned to support the government’s transformational agenda.

He added: "As we implement the recapitalisation of the existing banks, we shall not allow potentially insolvent banks to enter the industry. We need to manage entry to ensure that down the line we do not manage the exit of banks as we did this year."

READ MORE: Parliament approves budget without minority

The Bank of Ghana, in September has formally direct banks in the country to recapitalise to GH¢400 million, equivalent to about US$100 million.

The central bank will give the banks until December 2018 to raise the amount, which represents a 333.3 per cent increase from the current minimum capital of GH¢120 million.

The recapitalization is, therefore meant to help build strong banks capable of financing big ticket transactions, especially in the petroleum sector commercial oil production has led to an influx of multi billion investments.