The Bank of Ghana(BoG) is still urging banks to consider mergers to enable them meet the new minimum capital requirement before the set deadline.
The Bank of Ghana(BoG) has set the new minimum capital requirement for banks at 400 million cedis away from the current 120 million cedis.
The banks have until the end of the next year to meet it.
Chief Manager for Banking Supervision at the Bank of Ghana, Edmund Nelson who spoke on the issue said it will be prudent for banks to consider that option to stay in business.
“Banks have up to December 2018 to comply with the new capital requirement and would be required to submit a capitalization plan to the Bank of Ghana. We therefore encourage banks to explore merger arrangements as early as possible so as to meet the deadline where there are challenges of raising the capital single handedly”.
He made these comments at the sidelines of the opening ceremony of the new head office of First Bank of Nigeria (FBN).
Meanwhile, Chief Executive Officer of FBN, Dr Adesola Adeduntan has stated that the bank has enough funds to meet the requirement.
“I would like to assure all our stakeholders and our cherished customers and the banking community at large in Ghana that FBN Bank Ghana is in a good position to meet the impending increase in the minimum capital requirement for banks”.
Dr Adeduntan also commended the move by the Bank of Ghana to increase the capital requirement as he believes it will strengthen the country’s banking system.
“I share in the Bank of Ghana’s resolve to raise the bar in the minimum capital requirement for banks operating in Ghana particularly in the wake of the recent collapse of the two banks,” he said.