The head of banking supervision at the Bank of Ghana (BoG) Raymond Amanfo says banks in financial distress have until September to improve their financial position. 

This follows reports that two of the nine banks that are in serious financial distress, could be closed by the Bank of Ghana if they fail to recapitalize.

JOYBUSINESS sources have indicated that the action is part of some requirements that needed to be taken by the government before Ghana can go to the IMF Board for its fourth review meeting, which is now set for August 30, 2017

Even though the Bank of Ghana would not want to comment on the said troubled financial institutions, Raymond Amanfo maintained that liquidation would be the last option.

According to Mr. Amanfo, as far as BoG is concerned, 9 banks are not in a good financial position, but BoG is working with them to help address the challenges facing their operations. 

The Governor of the Central Bank at a recent news conference by the Monetary Policy Committee (MPC) indicated that the Asset Quality Review of the Central Bank has been implementing a roadmap for recapitalization.

This requires a few banks which did not meet the minimum capital adequacy ratio, to submit capital restoration plans.

He said "The implementation of the roadmap is on course. Most of these banks have met the minimum requirement and a few are on course to doing so within the stipulated timeframe."