BoG to extend deadline
By Kofi Ahovi
The Bank of Ghana (BoG) is considering extending the deadline set for banks with foreign majority owned equity from December 2009 to the first quarter of next year.
This follows request by some of the universal banks for BoG to extend the deadline to allow the banks adequate time to fully meet the new minimum capital requirement of GH¢60 million, a source disclosed to Business Week.
The deadline was set by the previous BoG administration, whoever the new governor is set for the recapitalization of the banks.
Officials of BoG were however unavailable to confirm or otherwise of the matter.
Banks with majority foreign owned equity are required to have minimum capital of GH¢60 million by the end of this year. However, banks with majority Ghanaian owned equity are required to have minimum capital of first GH¢25 million by the end of this year, but must have increased this to at least GH¢60 million by the end of 2012.
The new minimum capital requirements are to be met in stages, involving differing minimum capital levels for indigenous and foreign banks, during the first stage which has December this year as its deadline, but a common minimum capital level by the end of the second and final stage, which has the end of 2012 as its deadline.
Ghana Commercial Bank (GCB), Agricultural Development Bank (ADB), Merchant Bank Ghana (MBG), Barclays Bank Ghana Ltd. (BBGL), United Bank for Africa (UBA) and Access Bank, the latest entry, have already crossed the bridge.
Banks like CAL, SG-SSB and Ecobank are issuing renounceable rights offers on the Ghana Stock Exchange (GSE). Others like Fidelity are seeking for more capital by private placement.
The increase in the new minimum capital requirement will further improve both the liquidity and solvency position of banks to give them more financial muscle and enable them deal effectively with any future shocks.
By Kofi Ahovi
The Bank of Ghana (BoG) is considering extending the deadline set for banks with foreign majority owned equity from December 2009 to the first quarter of next year.
This follows request by some of the universal banks for BoG to extend the deadline to allow the banks adequate time to fully meet the new minimum capital requirement of GH¢60 million, a source disclosed to Business Week.
The deadline was set by the previous BoG administration, whoever the new governor is set for the recapitalization of the banks.
Officials of BoG were however unavailable to confirm or otherwise of the matter.
Banks with majority foreign owned equity are required to have minimum capital of GH¢60 million by the end of this year. However, banks with majority Ghanaian owned equity are required to have minimum capital of first GH¢25 million by the end of this year, but must have increased this to at least GH¢60 million by the end of 2012.
The new minimum capital requirements are to be met in stages, involving differing minimum capital levels for indigenous and foreign banks, during the first stage which has December this year as its deadline, but a common minimum capital level by the end of the second and final stage, which has the end of 2012 as its deadline.
Ghana Commercial Bank (GCB), Agricultural Development Bank (ADB), Merchant Bank Ghana (MBG), Barclays Bank Ghana Ltd. (BBGL), United Bank for Africa (UBA) and Access Bank, the latest entry, have already crossed the bridge.
Banks like CAL, SG-SSB and Ecobank are issuing renounceable rights offers on the Ghana Stock Exchange (GSE). Others like Fidelity are seeking for more capital by private placement.
The increase in the new minimum capital requirement will further improve both the liquidity and solvency position of banks to give them more financial muscle and enable them deal effectively with any future shocks.
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