[ 2016-09-22 ]

BoG to increase minimum capital for banks

The Bank of Ghana (BoG) has set up a technical
committee to advice it on new modalities to be
used in increasing the minimum capital of banks.

The setting up of the committee followed the
outcome of an earlier review of the asset levels
and quality of banks, which showed that "there is
need for additional capital," the Governor of the
Central Bank, Dr Abdul-Nashiru Issahaku, told
bankers in Accra.

As a result, he said the recommendations of the
committee, which will include the amount banks
should be recapitalised to, was expected later
this year to serve as basis for a new phase of
recapitalisation for banks operating in the
country.

Currently, banks in the country are expected to
hold a minimum of Ghc60 million as stated capital
with new entrants expected to bring Ghc100
million.

Dr Issahaku said the earlier review showed that
amount was disingenuous to economic development.

As a result, he said the recapitalisation was
expected to ensure that banks were well positioned
to finance big ticket transactions in and outside
of the country.

Source - graphic.com.gh

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