The Bank of Ghana (BoG) has advised players in the banking sector to suspend the payment of profits to their shareholders.

This, according to officials of the central bank, will enable banks to position themselves appropriately to meet the deadline of the minimum capital requirement.

Ashanti Region Manager of the Bank of Ghana, Michael Anyamesem, says suspending profit payment is critical to enable banks to meet the deadline.

“Even though some of our institutions are requesting for an extension of the deadline date, we are currently sticking to the December 31, 2018 [deadline]. It is our expectations that banks will suspend their profit distribution this year to enhance their ability to comply the capital deadline”.

- Michael Anyamesem

This suggestion comes on the heels of efforts of many banks to meet the increased minimum capital requirement from ¢120 million to ¢400 million by the December deadline.

But some players in the sector have already called for an extension of the deadline as many struggles to meet it.

Mr Anyamesem made the proposal when he delivered a speech on behalf of Head of Banking Supervision, Osei Gyasi, at the opening of the Kwame Nkrumah University of Science and Technology (KNUST) branch of Standard Chartered Bank.

Mr Anyamesem adds that the Bank of Ghana will soon start the implementation of the internal capital adequacy assessment process to complement the risk base supervisory framework.

2019 plans to protect depositors

A number of guidelines and directive to strengthen the supervisory and risk management practices has been lined up by the central bank.

The central bank plans to operationalise by early next year will get the Bank of Ghana Deposit Protection Scheme established under Ghana Deposit Protection Act 216, (Act 931 as amended) to provide further protection for depositors’ fund.

It is part of plans to promote a high standard in the industry.

Also, guidelines for a strict, fit and proper test for bank directors, shareholders and key management personnel will soon be rolled out.

Officials of the central bank have observed that the heightened competition in the industry is driving banks to get ahead of their competition and in so doing create risk.

“The banking system is now international financial accounting reporting standards (IFRS 9) compliant, which will be evident in the financial publications of banks in the months coming,” Mr Anyamesem revealed.