The Bank of Ghana says it will strictly enforce new capital requirement, the governor has said.
Governor of the Central Bank, Dr. Ernest Addison stated that the bank will depart from the practice where the new capital requirement is just announced and banks are left not to meet it.
The BoG he noted will soon increase the minimum capital requirement of banks from the current 120 million cedis to an estimated 250 million cedis.
The governor speaking at the day two of the Ghana Economic Forum organized by the B&FT said, “Let me assure you that whatever decision that we make on the new level of capitalization, it will be accompanied by procedures for enforcement. We are not just going to announce a minimum capital requirement that will not be enforced. This has been the practiced in the past where new capital requirements are announced, the banks are given a 2 year period to meet the requirement, and they never really meet it.’’.
He added: ‘’ “In fact the 120 million cedis that was last announced was supposed to be for new entrants but the bank has not really clarified what that level of capitalization means for banks that already existed. We are not going to have that happening going forward”.
“Once we announce the new capital, this will be accompanied by measures of enforcement and we will do this in a very orderly manner. We are not going to see any disorderly consolidation in Ghana if this is the way that we to go,” he said.