Pulse logo
Pulse Region

BoG stands ground on GHS400m recapitalization

The Second Deputy Governor of the Bank of Ghana, Mrs Elsie Awadzie, said despite pleas by some domestic banks for the deadline to be extended to 2023 the BoG will not do that.

The Bank of Ghana (BoG) has reiterated that it still stands by its decision to for all banks to meet the new minimum capital requirement of GHS400million by the 31 December 2018 deadline.

The Second Deputy Governor of the Bank of Ghana, Mrs Elsie Awadzie, said this is despite pleas by some domestic banks for the deadline to be extended to 2023.

“The BoG directive still stands and we expect all banks to meet the requirement by December 2018”.

READ ALSO: Traffic wardens plead for new jobs after East Legon tunnel opens

“President Nana Addo Dankwa Akufo-Addo has set up a committee with key stakeholders to explore ways in which indigenous banks can be supported, but that has nothing to do with the directive,” she added.

In December 2017, the BoG increased its minimum capital requirement for commercial banks from GHS120 million to GHS400 million.

Banks unable to meet the deadline will face possible repercussions which include the loss of their banking license.

READ ALSO: SSNIT spent $140m on ‘partially functional’ digitization project

Banking experts have said that banks that are unable to meet the requirement should merge to avoid getting shut down.

Mrs Awadzie was speaking at a meeting of Chief Executive Officers and other senior management members of banks in Accra on Tuesday, 24 April 2018.

Subscribe to receive daily news updates.

Next Article