By Kofi Ahovi
According to a report by PricewaterhouseCoopers, prepaid in collaboration with the Ghana Association of Bankers, three majority Ghanaian owned banks and a majority foreign owned bank have already met the new minimum capital requirement, six months ahead of the deadline for completion of the first stage for the recapitalization demanded by the Bank of Ghana.
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.
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.
Ghana Commercial Bank (GCB), Agricultural Development Bank (ADB), Merchant Bank Ghana (MBG) and Barclays Bank Ghana Ltd. (BBGL), have already crossed the bridge.
According to the report, GCB already possesses capital of GH¢152.3 million as against the minimum capital requirement of GH¢25 million by the end of 2009.
ADB also possesses a capital of GH¢62.8 million, well above the required amount.
Though MBG has beaten this year’s deadline of GH¢25 million, it needs to raise additional 25.2 million to meet the 2012 deadline. Its available capital is GH¢34.8 million.
BBGL is the only majority foreign bank to beat the new minimum requirement ahead of the set date. Its capital stands at GH¢71.6 million.
CAL Bank needs GH¢5.1 million in addition to its GH¢19.9 million to meet the new requirement. It further needs about GH¢46 million to meet the 2012 deadline.
HFC needs GH¢6.5 million to top up its capital of GH¢18.5 million to meet the new capital requirement by December and about GH¢35 million before the 2012 deadline.
The Trust Bank will also need about GH¢7.4 million to augment its capital of GH¢17.6 million in order to meet the 2009 deadline. In order to meet the 2012 deadline, it needs about GH¢42.4 million.
UT Bank has a capital of GH¢16.9 million and needs about GH¢8.1 million to meet this year’s deadline and about GH¢51.9 million to meet the overall minimum requirement.
Prudential Bank also possesses a capital of GH¢9.2 million and needs about GH¢15.8 million by December this year and GH¢ 50.8 million by 2012.
Fidelity bank also possesses a capital of GH¢8.6 million and requires additional GH¢16.4 million and about GH¢51.4 million by 2009 and 2012 respectively.
Unique Bank, according to the report needs about GH¢17 million in addition to its capital of GH¢ 8.62 million and about GH¢52.05 million by 2009 and 2012 respectively.
First Atlantic Merchant Bank possesses a capital of GH¢7.01 million and needs about GH¢17.99 million to meet the GH¢25 million new requirements by December this year and about GH¢52.99 million by 2012.
Standard Chartered Bank, a majority foreign owned bank, also needs an amount of GH¢7.2 million to add to its capital of GH¢52.8 million in order to meet the new minimum requirement.
Ecobank Ghana (EBG) needs additional capital of GH¢9.2 million to add to its capital of GH¢50.9 million.
SG-SSB possesses a capital of GH¢43.6 million and needs an additional GH¢16.4 million by the end of the year.
Stanbic bank also possesses a capital of GH¢38.8 million and needs an additional GH¢21.2 million to meet the new minimum requirement by the set date.
Zenith Bank on the other hand needs about GH¢24.8 million to augment its capital of GH¢35.2 million by end of the year.
Intercontinental Bank Ghana (IBG) has a capital of GH¢16.2 million and needs about GH¢43.8 million during the same period.
Amalgamated Bank Ltd (ABL) also has a capital of GH¢9.2 million and needs about GH¢50.8 million by the end of the year to meet the new requirement.
International Commercial Bank (ICB) on the other hand needs about GH¢52.2 million to add to its capital of GH¢7.8 million.
Guarantee Trust Bank (GTB) also needs about GH¢49.9 million to add to its capital of GH¢10.14 million.
Bank of Baroda possesses a capital of GH¢7.2 million and needs about GH¢52.8 million by the end of the year.
Finally, United Bank for Africa (UBA) which possesses a capital of GH¢20.6 million and needs about GH¢39.4 by year end.
The increase in the new minimum capital requirement will further improve both the liquidity and solvency position of banks to enable them deal effectively with any future expected shocks.
According to a report by PricewaterhouseCoopers, prepaid in collaboration with the Ghana Association of Bankers, three majority Ghanaian owned banks and a majority foreign owned bank have already met the new minimum capital requirement, six months ahead of the deadline for completion of the first stage for the recapitalization demanded by the Bank of Ghana.
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.
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.
Ghana Commercial Bank (GCB), Agricultural Development Bank (ADB), Merchant Bank Ghana (MBG) and Barclays Bank Ghana Ltd. (BBGL), have already crossed the bridge.
According to the report, GCB already possesses capital of GH¢152.3 million as against the minimum capital requirement of GH¢25 million by the end of 2009.
ADB also possesses a capital of GH¢62.8 million, well above the required amount.
Though MBG has beaten this year’s deadline of GH¢25 million, it needs to raise additional 25.2 million to meet the 2012 deadline. Its available capital is GH¢34.8 million.
BBGL is the only majority foreign bank to beat the new minimum requirement ahead of the set date. Its capital stands at GH¢71.6 million.
CAL Bank needs GH¢5.1 million in addition to its GH¢19.9 million to meet the new requirement. It further needs about GH¢46 million to meet the 2012 deadline.
HFC needs GH¢6.5 million to top up its capital of GH¢18.5 million to meet the new capital requirement by December and about GH¢35 million before the 2012 deadline.
The Trust Bank will also need about GH¢7.4 million to augment its capital of GH¢17.6 million in order to meet the 2009 deadline. In order to meet the 2012 deadline, it needs about GH¢42.4 million.
UT Bank has a capital of GH¢16.9 million and needs about GH¢8.1 million to meet this year’s deadline and about GH¢51.9 million to meet the overall minimum requirement.
Prudential Bank also possesses a capital of GH¢9.2 million and needs about GH¢15.8 million by December this year and GH¢ 50.8 million by 2012.
Fidelity bank also possesses a capital of GH¢8.6 million and requires additional GH¢16.4 million and about GH¢51.4 million by 2009 and 2012 respectively.
Unique Bank, according to the report needs about GH¢17 million in addition to its capital of GH¢ 8.62 million and about GH¢52.05 million by 2009 and 2012 respectively.
First Atlantic Merchant Bank possesses a capital of GH¢7.01 million and needs about GH¢17.99 million to meet the GH¢25 million new requirements by December this year and about GH¢52.99 million by 2012.
Standard Chartered Bank, a majority foreign owned bank, also needs an amount of GH¢7.2 million to add to its capital of GH¢52.8 million in order to meet the new minimum requirement.
Ecobank Ghana (EBG) needs additional capital of GH¢9.2 million to add to its capital of GH¢50.9 million.
SG-SSB possesses a capital of GH¢43.6 million and needs an additional GH¢16.4 million by the end of the year.
Stanbic bank also possesses a capital of GH¢38.8 million and needs an additional GH¢21.2 million to meet the new minimum requirement by the set date.
Zenith Bank on the other hand needs about GH¢24.8 million to augment its capital of GH¢35.2 million by end of the year.
Intercontinental Bank Ghana (IBG) has a capital of GH¢16.2 million and needs about GH¢43.8 million during the same period.
Amalgamated Bank Ltd (ABL) also has a capital of GH¢9.2 million and needs about GH¢50.8 million by the end of the year to meet the new requirement.
International Commercial Bank (ICB) on the other hand needs about GH¢52.2 million to add to its capital of GH¢7.8 million.
Guarantee Trust Bank (GTB) also needs about GH¢49.9 million to add to its capital of GH¢10.14 million.
Bank of Baroda possesses a capital of GH¢7.2 million and needs about GH¢52.8 million by the end of the year.
Finally, United Bank for Africa (UBA) which possesses a capital of GH¢20.6 million and needs about GH¢39.4 by year end.
The increase in the new minimum capital requirement will further improve both the liquidity and solvency position of banks to enable them deal effectively with any future expected shocks.
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