Many banks are close to meeting the Bank of Ghana’s GHS400 million Minimum Capital Requirement (MCR) as the 31 December 2018 deadline approaches, Governor of the central bank, Dr Ernest Addison, has said.
“We are happy to note that many banks are close to meeting the new Minimum Capital Requirement and a few are concluding discussions on merger”, Dr Addison said at a press briefing on Monday, 26 November 2018.
The central bank Governor said the apex bank is working closely with the banks to ensure that they meet the new requirement, adding that the Bank of Ghana expects 2019 “to commence with a well-capitalised, very robust banking system with no weak institutions”.
Dr Addison also said the BoG is monitoring the savings and loans as well as the microfinance sphere to mop up the “distressed institutions in the sector” with the help of the Ministry of Finance.
Ahead of the deadline, seven local banks have already gone under.
They include UT Bank and Capital Bank, which were taken over by the state-owned GCB Bank in August 2017.
In August 2018, five other struggling local banks: The Beige Bank, The Royal Bank, The Construction Bank, uniBank and Sovereign Bank, were all put together to form the all-new state-owned Consolidated Bank Ghana (CBG).
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