Minimum Capital Requirement: BOG Assures Smooth Transition
The Second Deputy Governor of the Bank of Ghana (BOG), Elsie Addo Awadzi, has assured stakeholders of a smooth transition to the new capital requirement by December 2018.
Addressing stakeholders at a breakfast meeting in Accra yesterday, under the theme ‘Building a Resilient Banking Sector to Support a Vibrant Ghanaian Economy’, she said “the Bank of Ghana remains committed to restoring trust and confidence in the banking system, and to promoting a strong and resilient banking sector to support robust macro-economic growth.”
The Bank of Ghana last year announced an increment in the minimum capital requirement of Universal Banks from ¢120 million to ¢400 million.
Commercial banks have been given up to December 2018 to meet the new capital which represents an increase of 233 percent.
Mrs. Awadzi believes, the increase in capital requirement would help reduce the likelihood of bank failures, and the loss of depositor funds.
Touching on some reforms intended to promote a strong and resilient banking sector in the country, she said “the Bank of Ghana will operationalize the deposit protection scheme established under the Ghana Deposit Protection Act, 2016 (Act 931) as amended, to provide further protection for depositors’ funds.
“We will also issue and strictly enforce “fit and proper person” guidelines for bank shareholders, directors, and key management personnel, to promote high standards in the industry; and strengthen regulation and supervision of bank holding companies and affiliate companies to reduce intra-group exposures,” she stressed.
She further assured stakeholders that it will continue to monitor developments in the banking sector and take strong and decisive actions to ensure depositors’ funds remain safe.
By: Emmanuel Yeboah Britwum