GHC400m recapitalization: 10 Banks in danger – BoG

The Bank of Ghana has revealed that 20 Banks are so far in the position to meet the December Deadline for the GHc400,000,000 minimum Capital requirement.

This means four more banks have being added to the list of banks as at last month.

The development means 10 banks are yet to demonstrate to the regulator that they can meet the deadline for recapitalization.

Second Deputy Governor of the Central Bank, Elsie Awadzi, revealed this at the Finance forum in Accra on Thursday.

“Over 20 banks have met [minimum recapitalization] or are already there and we have 30 banks so the rest, we are meeting them on daily basis to say tell where you are on your capital raising plans.

“We are confident that they are going to meet [it] but if for some reason they cannot meet and will not merge, well then that is another matter altogether but we cannot allow banks that are not well capitalized to remain in the system after January 1st.”

She added that a capital verification process has been put in place to ensure banks meet the requirements beyond the information provided.

Five local banks – Beige, Unibank, Construction Bank, Sovereign Bank and Royal Bank – were in August this year merged by the Central bank to form the Consolidated Bank of Ghana.

The local banks were allegedly insolvent and on the verge of collapse.