The Governor of the Bank of Ghana (BoG) has justified the decision for all commercial banks to have a minimum capital level of ¢400 by December 2018. Responding to a question on having a separate capital level for each bank based on their categorization, Dr. Ernest Addison said the increase in capital requirement to ¢400 million was influenced by current developments in the economy.
According to him, “a bank that can mobilize adequate resources and finance big-ticket transactions is crucial in being able to deliver that transformation and this is why we are emphasizing the strength of the capital of the banks”.
“So yes, if you think that you are operating in a “niche market” that does not require that you should have a ¢400 million level of capitalization you can choose to go for a savings and loan license,” Dr Addison added. He believes there would not be a “turning back” on this decision to for every bank to meet the new capital levels of ¢400 million by December 2018.
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