23 banks operating after recapitalization – BoG

The Bank of Ghana have confirmed that 23 banks have been left to operate now following the recapitalization exercise that ended on December 31, 2018.

It follows an initial 36 banks that were operating prior to the BoG’s GH?400m minimum capital requirement for universal banks.

Speaking at a press conference in Accra on Friday, Dr.Ernest Addison stated that there are now 23 universal banks operating in the country.

“These banks have all met the minimum paid-up capital of GH?400m” he said.

He also explained that in particular, sixteen banks have met the new paid-up capital requirement of GH?400m mainly through capitalization of income surplus and a fresh capital injection.

The BoG has also approved three applications for mergers, consequently, First Atlantic Merchant Bank Limited and Energy Commercial Bank have merged, Omni Bank and Bank Sahel Sahara have merged, and First National Bank and GHL Bank have merged.

The three resulting banks out of these mergers have all met the new minimum capital requirement.

Some private pension funds in Ghana have also injected fresh equity capital in five indigenous through a special purpose holding company named Ghana Amalgamated Trust Limited.

In addition to the state-owned banks(ADB, NIB) benefitting from the GAT scheme, the other beneficiary banks(the merged Omni/Bank Sahel Sahara, Universal Merchant Bank and Prudential Bank) were selected by GAT on the basis of their solvent status and good corporate governance.