Mr. Asare Akuffo, President of the Ghana Association of Bankers has expressed concern about the artificial growth of banks as a result of the mandatory minimum capital requirements. The requirements which were introduced in 2009, upped the minimum capital banks require to operate to GH¢60 million with locally-owned banks expected to achieve this by 2012. A number of acquisitions have already happened as a result with a number of mergers also said to be in the works. The latest is ECOBANK Transnational Incorporated’s bid for The Trust Bank. Mr. Asare Akuffo says the move is forcing banks to grow against their will with serious implications for the industry. “It is not for anybody to determine how big a bank in Ghana should be…let’s face it, some banks want to be small, why not? There could be a bank that wants to play only in Accra, yes it has the right,” he stated. He said there were big banks such as the Ghana Commercial Bank, Stanchart, Barclays amongst others, and that small banks should be allowed to operate. Mr Akuffo said forcing small banks to become big banks “can bring disaster as is happening in Nigeria where they are pumping billions to rescue banks.” The HFC Bank Managing Director said the development could push out many local banks in the country. “Ghanaians have been given licenses to establish banks and they are doing quite well, serving some customers who are happy. Now you are pushing them to raise capital, do you what means? Most of them have to go offshore to bring foreign investors so if we are not careful before you blink all the banks in Ghana are foreign owned because you are pushing then to raise capital which they cannot find locally. Meanwhile there is nothing with what they are doing,” he stated. Source: Joy Business/Ghana