Forcing banks to recapitalise could backfire - Bankers Association UK

Read Comments Comments (2)

• Tokugawah 12 years ago

  The arguments of the British Bankers Association do not apply to banking in Ghana. There is an absolute need for banks in Ghana to at least double their capital requirement. The reason is because banking is far riskier in Gha ...
  read full comment

  The arguments of the British Bankers Association do not apply to banking in Ghana. There is an absolute need for banks in Ghana to at least double their capital requirement. The reason is because banking is far riskier in Ghana than in Europe or even West Africa with higher NPL ( Non Performing Loans) It is farcical to read of banks increasing met profit by 3 sometimes 4 digit percentages. Ghanaian banks give riskier loans and do not make sufficient provisions against bad debts hence the higher year on year ridiculous percentage increases in profits. How many banks would pass the Stress Tests applied to banks in Europe and the USA. I suspect very few, certainly none of the indigenous banks. Bank of Ghana is doing the right thing by asking for a doubling of banks capital. If indigenous banks have to merge or are taking over it is not a bad thing.

  reply
• John Smart 12 years ago

  Ghana being a developing country can also be said to have a fragile economy. That being said, the savings of bank customers has to be protected at all times. Recapitalization is for now the sure way of giving that confidence ...
  read full comment

  Ghana being a developing country can also be said to have a fragile economy. That being said, the savings of bank customers has to be protected at all times. Recapitalization is for now the sure way of giving that confidence to customers should the bank fails. In addition, a well capitalized bank is also the corner stone of what investors look at in doing business with local banks i.e. making sure their money/investment is fully secured.

  reply