Banking Consultant Nana Otuo Acheampong is positive banks will be able to meet the new capital requirement set by the Bank of Ghana (BoG).
The Bank of Ghana officially announced this week that capital requirement for banks have been increased from 120 million cedis to 400 million cedis. Some financial observers have pointed out that some indigenous banks may not be able to meet the new requirement
But Nana Otuo-Acheampong in an interview with Citi Business News maintained that the banks are capable of meeting the regulation.
“If history is anything to go by then the answer is positive for the simple reason that before the 2002 increase from seven million to sixty million, everybody thought that was a big jump and that they won’t be able to meet it but somehow by the deadline they had all met.So equally moving forward for some of the banks they will meet it” he asserted.
“ For those who came on the scene after 2014 it’s from 120 million cedis. They will be capable, especially having regards to the fact that they have now been given till December 2018, so they have got almost one year to the extra cash that they will need” he added.
The Bank of Ghana (BoG) on Monday announced a new capital requirement of 400 million cedis for banks in the country.
This represents an increase of 233.3 percent from the previous 120 million cedis.
Some financial observers have since expressed mixed reactions to the Bank of Ghana’s decision to increase the minimum capital requirements for commercial banks.
Though they largely subscribe to the need to intensify the regulation of the banking sector, the analysts believe the central bank ought to do more to strengthen Ghana’s financial industry.
By: Jessica Ayorkor Aryee/citibusinessnews.com/Ghana