The Bank of Ghana must stay away from the practice of supporting weaker banks in the country, the Financial Analyst with the Trust Consult, Charles Mensah has warned. 

He said, the best approach for banks to remain strong is to merge with stronger ones in order to stay in business and have more funds to secure capital intensive projects.

The Bank of Ghana is yet to come up with a new minimum requirement for commercial banks. There is however some apprehension in the industry as some banks fear fold ups because of their precarious financial situation.

Joy Business has gathered that some commercial banks are even struggling to remain in business due to the decision by government to increase the capital rate.

So far, out of the thirty three universal banks in the country, about nine of them have their recapitalization plan rejected by the Central Bank following their inability to meet certain criteria.

In an interview with Joy Business on the issue, Charles Mensah thinks banks that are not able to meet the new capital requirement should be allowed to go into mergers or acquisitions.

The bank of Ghana has however indicated that the recapitalization review will be roll out before the end of the year