BoG to increase minimum capital for banks

The Bank of Ghana (BoG) has set up a technical committee to advice it on new modalities to be used in increasing the minimum capital of banks. 

The setting up of the committee followed the outcome of an earlier review of the asset levels and quality of banks,  which showed that "there is need for additional capital," the Governor of the Central Bank,  Dr Abdul-Nashiru Issahaku,  told bankers in Accra. 

As a result,  he said the recommendations of the committee,  which will include the amount banks should be recapitalised to, was expected later this year to serve as basis for a new phase of recapitalisation for banks operating in the country.

Currently, banks in the country are expected to hold a minimum of Ghc60 million as stated capital with new entrants expected to bring Ghc100 million.

Dr Issahaku said the earlier review showed that amount was disingenuous to economic development. 

As a result, he said the recapitalisation was expected to ensure that banks were well positioned to finance big ticket transactions in and outside of the country.