Capital Requirement Deadline: BoG’ Has Not Shifted Position- Deputy Governor

Second Deputy Governor of the Bank of Ghana (BoG), Elsie Awadzi says the Central Bank has not shifted from its position that all banks must meet the capital requirement by the deadline of 31st December 2018.

She said the option of merger is available for banks that cannot meet the requirement, adding that the banks are free, even encouraged to explore that the merger option.

According to her, experiences elsewhere have shown that mergers work and have created strong, stable and robust financial systems.

The Second Deputy Governor however expressed optimism that many banks will meet the minimum capital requirement of ¢400 million by December this year.

Mrs. Awadzi who was speaking at the Graphic Business/Stanbic Bank Breakfast Meeting in Accra on Tuesday, said apart from some banks announcing that they either have met, or about meeting the requirement, the Central Bank was convinced, on the basis of available evidence, that the amount would be realised before the deadline given by the regulator.

Some of the local banks have appealed to President Nana Akufo-Addo to intervene and keep the Central Bank at bay as far as the enforcement of the capital requirement is concerned.

They want the regulator to stagger the implementation of the new requirement up to 2022 when they believe they would have been in a better stead to meet the stated capital.

However, the second deputy governor says the Central Bank will not change the deadline date for meeting the requirement.