Licensing of Banks BoG will license institutions only if they meet requirements

The Head of Banking Supervision at the Bank of Ghana, Raymond Amanfu that the Central Bank only denies some financial institutions the license to operate as banks if they do not meet the requirements for such a status.

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Head of Banking Supervision at the Bank of Ghana, Raymond Amanfu play

Head of Banking Supervision at the Bank of Ghana, Raymond Amanfu

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The Bank of Ghana (BoG) has indicated that it will only license financial institutions seeking to be banks if they meet the requirements for such a status.

Head of Banking Supervision at the Bank of Ghana, Raymond Amanfu who spoke to Accra-based Citi FM said the right processes must be followed in such issues.

“We are not stopping licensing of new banks neither are we giving everybody who comes for a license, there are some licenses we have declined because they don’t meet the criteria so the fact that somebody comes and say I want a license, it is not automatic.”

He explained that the Central Bank only denies some financial institutions the license to operate as banks only if they do not meet the requirements for such a status.

READ ALSO: BoG announces new foreign exchange rules

He said the bank has been fair in this key role they play to help maintain sanity in the banking sector.

He also mentioned that BoG cannot determine how many banks are needed in the country.

“It’s not the question of how many banks, it is a question of how strong the banks are and when you have competition it will drive it down,” he noted.

READ ALSO: BoG under pressure to license more banks

Currently there are 32 banks in Ghana. Five of the 32 were licensed this year. The approved banks this year include OmniBank, Premium bank and Ghana Home Loans.

The Chief of Staff, Julius Debrah at the launch of OmniBank urged the BoG to give licenses to indigenous companies who meet the criteria to be a bank.

However, the BoG insist it will not yield to any form of pressure but Amanfu said they will only do what is right.

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