Pulse.com.gh logo
Go


GH¢400m Capital Requirement Meet the requirements or merge - Council Of State tells struggling banks

Indigenous banks petitioned the Presidency and the Council of State over the amount and timelines to achieve the new capital requirement, however the indigenous banks have been asked to merge to meet the target.

  • Published:

The Council of State has entreated local banks to consider merging so that they can meet the new capital requirement by the Central Bank.

This comes after the indigenous banks petitioned the Presidency and the Council of State over the amount and timelines to achieve the new capital requirement.

The Council of State met with the Central Bank and the indigenous banks after which a statement was released.

READ ALSO: Ghana’s economy grows by 8.5% in 2017

It called on the Bank of Ghana to increase its monitoring activities in order to bolster confidence in the banking sector.

“The council advised indigenous banks which could not meet the bank of Ghana’s capital requirement to enter into mergers to compete favourably and ensure sanity in the banking sector.”

“While supporting measures so far taken by the bank of Ghana to ensure prudence in the banking sector, the council urged the bank to broaden its avenues for public engagement. Ultimately depositors interest must be protected at all times, and the public needs to be assured to boost confidence in the banking sector,” the statement added.

In 2017, the Bank of Ghana increased the minimum capital requirement to GH¢400 million, equivalent to about US$100 million. This is a 333.3 percent increase from the minimum capital of GH¢120 million.

READ ALSO: Work resumes at Ahafo mines following the death of 6

Commercial banks in the country have up to December 2018 to raise the amount.

Banks were last recapitalized in 2012 when the BoG asked them to raise their stated capital from GH¢60 million at the time to the current GH¢120 million.

That round of recapitalization led to the consolidation of three banks, The Trust Bank (into Ecobank), Intercontinental Bank (into Access Bank) and Amalgamated Bank (into Bank of Africa).

Do you ever witness news or have a story that should be featured on Pulse Ghana?
Submit your stories, pictures and videos to us now via WhatsApp: +233507713497, Social Media @pulseghana: #PulseEyewitness & DM or Email: eyewitness@pulse.com.gh.

Recommended Articles

Recommended Videos




Top Articles

1 Investment banks in Ghana Top 5 investment banks in Ghana and why you...bullet
2 Menzgold Ghana Don't deposit money with Menzgold – BoG cautions public...bullet
3 Salaries In 2018 Here are the dates public workers will be paid in 2018bullet
4 Taxes In Ghana Don't rejoice; VAT has been hiked through...bullet
5 Education Top 5 private high schools in Ghana according to WAECbullet
6 Number 12 Panic withdrawals hit savings & loans company...bullet
7 Menzgold Ghana Investment company closes down its Gold Vault...bullet
8 Uche Ofodile Captain Planet’s wife heads MTN Liberiabullet
9 Kwabena Duffuor Official: Duffuor’s assets not being...bullet
10 Mutual funds in Ghana Top 5 mutual funds in Ghanabullet

Top Videos

1 New Discovery Ghana discovers new mineral, lithium in commercial quantitiesbullet
2 Forbes 2018 Africa's billionaires rich listbullet
3 Plane Crash Starbow suspends operations following plane crashbullet
4 Money Alert Meet Africa's richest womanbullet
5 Bozoma Saint John 10 quotes from Uber top official, Bozoma, that...bullet
6 New Phones Nokia MWC 2018 Event in 5 minutesbullet
7 Support Finance minister buys Kantanka carbullet
8 Dr Joseph Siaw Agyepong Nobody can collapse my company –...bullet
9 Video We are determined to move Ghana beyond aid - Bawumiabullet
10 Tech 6 reasons you should buy an iPhone SE instead of...bullet

Business