Shaping the Volta

¢400m capital requirement: Local Banks CEOs run to president for cover

Lorlornyofm
By Lorlornyofm April 9, 2018 19:36

¢400m capital requirement: Local Banks CEOs run to president for cover

Heads of indigenous banks in the country have met the president, Monday, in a desperate move to have him intervene in a new capital requirement they claim could destabilize local banks.

The meeting Myjoyonline.com has heard ended inconclusively and the bank managers are likely to return to the presidency on Tuesday with the hope the president, Nana Akufo-Addo will soften the hearts of the officials at the Bank of Ghana to reduce the minimum capital requirement of ¢400 million.

They had early on petitioned the president to intervene and decided to follow up with a meeting.

Even though the Ghana Association of Bankers met with the Financial Committee of Parliament on general issues affecting the banking industry, the issue of the minimum requirement came up strongly with the local bank managers seeking the committee’s intervention as well.

Per a new Bank of Ghana law, all banks are to have a new minimum capital requirement of ¢400 million before they can operate.

Before the new law, the banks had a minimum capital requirement of ¢120 million. The increase to ¢400 million represents a 233% increase.

It is part of measures by the Ernest Addison led Bank of Ghana to strengthen the banking sector which has already seen some volatilities with the takeover of at least local banks.

All the banks have until the end of December 2018 to raise the minimum capital or risk folding up.

With some eight months away from the deadline, some local banks say the ¢400 million is too high a demand to meet.

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Source: Ghana|Myjoyonline.com

Lorlornyofm
By Lorlornyofm April 9, 2018 19:36
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