Over 25 banks in Ghana will have to race against time to meet the new capital requirement announced by the Bank of Ghana (BoG) as their current capital is less than 50 percent of the 400 million cedis quoted by the central bank.
According to the requirements, all 35 banks in the country are required to present their restoration plans, 3 will easily meet it while seven are in a position to meet it but for the payment of dividends and exclusion of unaudited accounts for the first half of 2017, among others.
The Bank of Ghana recently increased the capital requirement of banks from 120 million cedis to 400 million cedis to strengthen the financial system of the country. The banks in the country have to present their capital restoration plans within 45 days after the announcement by the Bank of Ghana, which means they all have up to December 2018 to meet it but this is the status quo as at now.
After the 45 days, the banks in the country will have 180 days to meet the requirement by presenting the capital requirement to the bank of Ghana. So if by April 2018 you have not meet it and the time is exhausted, then you have missed section 105. Missing section 105, you can’t lend, you can’t open branches you can’t do so many things.
About Bank of Ghana
The Bank of Ghana (BoG) is the central bank of Ghana. It is located in Accra and was formed in 1957. The bank is active in developing financial inclusion policy and is a member of the Alliance for Financial Inclusion . On 2 March 2012, during an African regional conference on Mobile Financial Services held in Zanzibar, the Bank of Ghana announced it would be making specific commitments to financial inclusion under the Maya Declaration.