The Board Chairman of the Royal Bank, Prof Bill Buenar Puplampu has appealed for a categorization in the minimum capital requirement for banks in the country.
Prof. Bill Puplampu’s call comes barely twelve months for banks to meet the new capital requirement of 400 million cedis.
Speaking to Citi Business News on the matter, Mr. Puplampu argued that a categorization could also come with some extended timelines.
“If you take the upper tier banks like the international banks, they don’t need to think twice, before they arrive at the four hundred million this is just like eighty million US dollars which they can easily get. But for those local indigenous banks where the money is coming from Ghana, it’s going to take a while to arrive at that figure.”
“So we are not quarreling with that figure but we are saying why don’t we have a different variated approach in terms of the timing to arrive at the 400 million”.
The Board Chairman further explained that different timing would make it more convenient for the different tier banks to arrive at the minimum capital requirement.
“Ideally a variated approach means that you have a different timeline for different tiers of banks; that is not the only thing, we are simply saying give us a variated approach to the same cut off point that’s all. It may be that the Central Bank comes back and says alright for local banks or tier three banks you can arrive at it in December 2019 and for the others you can arrive at it in December 2018”.
He however assured that the Royal Bank would meet the deadline of meeting the capital requirement.
“Let me assure all our clients that Royal Bank will meet the capital requirement by December 2018”.
Board Chairman of the Royal Bank, Prof Bill Buenar Puplampu, made these comments at the sidelines of the banks fifth anniversary celebration.
By: Anita Arthur/citibusinessnews.com/Ghana