20 banks meet new minimum capital requirement - Elsie Awadzi

20 banks meet new minimum capital requirement - Elsie Awadzi

Second Deputy Governor of the Bank of Ghana (BoG), Elsie Awadzi, has revealed that 20 banks have so far met the Central Bank’s minimum capital.

Earlier this year, the BoG announced a new GH₵400 million minimum capital requirement which all banks must meet by the end of December.

As the institution mandated to supervise and regulate the operations of all financial institutions in the country, the Central Bank went on to publish a list of banks that are duly licenced and of good standing in the country.

20 banks meet new minimum capital requirement - Elsie Awadzi
Elsie Awadzi, second deputy governor of the Bank of Ghana. Source: B&FT
Source: UGC

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According to the BoG, only 31 banks are duly licensed to operate in the country, as of August 2018.

However, the Second Deputy Governor of the Central Bank has now disclosed that 20 of the banks have so far met its GH₵400 million minimum capital requirement.

What the Central Bank is doing is just to build a strong financial industry for the Ghanaian economy. So far there are about some 20 of the commercial banks that have already provided the new capital requirement and have been satisfied by the Bank of Ghana,” Mrs. Awadzi said.

She warned that all banks that fail to meet the BoG’s minimum capital by the 31st December deadline will have their licenses revoked.

We have made this known to the various banks from the beginning of our engagements that whichever banks that will not be able to meet the requirement won’t be allowed to operate,” she noted.

Banking is a business that requires capital so if you can’t meet the required capital then we have no option.

“This is a painful pill we have to take to ensure it is resilient in the sector.”

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Two months ago, the Central Bank dissolved five “insolvent” indigenous banks to form the Consolidated Bank of Ghana Limited.

These were the Royal Bank, Sovereign Bank, The Construction Bank, uniBank and Beige Bank.

The BoG explained that the five banks were merged in order to “ensure that the banking sector maintains a strong indigenous presence”.

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Source: YEN.com.gh

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