Barclays Bank Ghana Limited has stated that it has met the 400 million cedis minimum capital requirement.
The Board Chairman of Barclays Bank Ghana, Charles Cofie disclosed this in a statement on Absa Group’s first half results for this year .
According to him, Barclays was among the first banks to meet the target without external capital injection.
“Barclays Bank Ghana is one of the first banks to meet the Central Bank’s new minimum capital requirement without external capital injection,” the statement noted.
It added that the bank “continues to demonstrate a strong liquidity position and a high capital adequacy ratio of 23.93%, well above the regulatory threshold of 10%. The bank remains a dependable financial partner with a strong financial base, robust governance structure and clear risk management framework.”
The commercial banks have till December 2018 to meet the new minimum capital.
Already, the Bank of Ghana has announced that there are fifteen banks comprising those that have either met or are likely to meet the deadline.
Following the consolidation of five local banks recently, it is expected that the remaining eleven banks will have to race against time to meet the capital requirement.
Per the directive, banks have three options to meeting the minimum capital requirement.
This includes common equity tier 1 capital where a bank can issue ordinary shares, income surplus or retained earnings as statutory reserves which is the amount of money that a bank must hold in order to remain solvent and attain partial protection against a substantial investment loss.
By: Pius Amihere Eduku/citibusinessnews.com/Ghana