Ensure due diligence to safeguard the interest of depositors – BoG urged

The Central Bank has been advised by the Council of State to intensify its due diligence, monitoring and enforcement processes to safeguard the interest of depositors.

This comes after the council engaged the Governor of the Central Bank in discussions to carefully deliberate on topical issues regarding the banking sector.

The meeting which came off on Thursday, April 12, 2017, had the Council advising indigenous banks which could not meet the Bank of Ghana’s capital requirement to enter into mergers in order to compete favourably and ensure sanity in the banking sector.

In a statement copied to GhanaWeb and signed by the Acting Secretary to the Council, Peace A. P. Okantey (Mrs) stated that “While supporting measures so far taken by the Bank of Ghana to ensure prudence in the banking sector, the Council urged the Bank to broaden its avenues for public engagement. Ultimately depositors interest must be protected at all times and public needs to be assured to boost confidence in the banking sector.”

Background

The BoG in December 2017, increased its minimum capital requirement for commercial Banks from GHC120 million to GHC400 million.

The Governor of the Central Bank stated that all the commercial banks are required to submit a recapitalisation plan to the regulator by December 2017.

The BoG had maintained that this move is to ensure that the regulator is fully aware of how these banks are working to meet the new capital levels.

Read full statement below

PRESS RELEASE

The Council of State today Thursday 12th April, 2018 met with the Governor of the Bank of Ghana (BoG) to discuss topical issues concerning the banking sector. The Council took the opportunity to discuss a petition submitted by Ghana’s indigenous Banks to the President with copy to the Council.

The Council of State was briefed on the position of the Bank of Ghana regarding challenges affecting the operations of the indigenous Banks and measures so far adopted by the Bank of Ghana.

After extensive deliberations and a careful examination of available options the meeting urged the Bank of Ghana to intensify its due diligence, monitoring and enforcement processes to safeguard the interest of depositors.

The Council advised indigenous Banks which could not meet the Bank of Ghana’s capital requirement to enter into mergers in order to compete favourably and ensure sanity in the banking sector.

While supporting measures so far taken by the Bank of Ghana to ensure prudence in the banking sector, the Council urged the Bank to broaden its avenues for public engagement. Ultimately depositors interest must be protected at all times and public needs to be assured to boost confidence in the banking sector.

Signed

Peace A. P. Okantey (Mrs)

Ag. Secretary to the Council.

Council of State's advise to local banks by GhanaWeb Editorial on Scribd