Audio By Carbonatix
Sources close to the Bank of Ghana (BoG) say the Central Bank is likely to settle on GH¢200 or GH¢300 million as the new minimum capital for banks.
The decision to settle on one of these amounts follows an extensive engagement with most players in the financial sector in 2016, by the committee set up by BoG.
The committee later presented its report in the last quarter of 2016 to the regulator. Sources say the new capital requirement should start from this year if the Central Bank is able to secure the necessary approvals from government.
The commercial banks will have one year to meet the new requirements.
JOYBUSINESS understands the regulator is waiting for the final approval from the new administration before it goes ahead with the announcement.
But even before this happens, JOYBUSINESS is learning, some local banks are making a case for the proposed increase to be postponed as some of the banks fear they cannot meet the new minimum capital requirement.
For some analysts, the development did not come as a surprise, because JOYBUSINESS understands, some banks have not met the previous minimum capital of GH¢120 million capital after they were initially given some waivers.
But the Bank of Ghana has maintained that the capital increase is inevitable.
They argue that they want to improve the financial position of commercial banks and prevent the situation where most banks, always turn to the regulator for waivers to finance transactions beyond a certain percentage of their minimum capital.
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