Four banks yet to meet GH¢60m recapitalization requirement

The number of commercial banks in Ghana yet to meet the Bank of Ghana’s GH¢60 million recapitalization requirement has reduced to four, the central bank has said.

As at December 2011, 16 of the 27 commercial banks licensed to do business in Ghana have raised the new stated capital required by the regulator.

With less than two months to the December 31, 2012 deadline to go, about six more banks are yet to meet the requirement, Citi FM reported November 5, 2012.

But the number has lowered to four.

At a Monetary Policy Committee (MPC) press conference November 14, 2012, acting governor of the Bank of Ghana (BoG), Dr Kofi Henry Wampah, said four banks are yet to meet the recapitalization requirement.

“Four banks are yet to meet the requirement. We will meet with them this month,” Dr Wampah told the press.

Dr Wampah, however, did not mention the names of the banks.

He said one of the four banks has submitted documents to the central bank showing it has met the target but “we will do due diligence” before accepting them.

He stated that plans by the banks to recapitalize “looks credible”.

Dr Wampah categorically reiterated that the December 31, 2012 recapitalisation deadline is still binding.

For the new banks yet to enter the Ghana market, the BoG has hinted that it intends to review the recapitalisation requirement upwards for them.

“We’ve not decided but want it to be GH¢100 million,” Dr Wampah said.

Three new banks are expected to enter the country’s banking sector after going through all the regulatory requirements. They are Royal Bank, First Capital Plus and First National Bank. Dr Wampah said Royal Bank has been issued a full licence while First Capital has a provisional licence.

By Ekow Quandzie