Minimum capital of banks raised to GH¢400 million by BoG

The Bank of Ghana (BoG) is set to increase the the amount of capital needed to operate a bank in the country to GH¢400 million.

The current minimum capital required by the BoG to run a bank is GH¢120 million, however, it is now set to be increased by 33.3%.

The new development will be officially communicated to all banks in the country on Monday, September 11, 2017, with banks being given up to December to raise the amount.

The rise of the amount from GH¢120 million to GH¢400 million is believed to have been agreed after a closed door meeting between the Governor of BoG, Dr Ernest Addison, and some leading executives of the various banks on Friday.

?The last time the BoG directed banks to recapitalise was in 2012 when the minimum capital was raised from GH¢60 million to the current GH¢120 million, representing a 100% increase in the amount.

The recapitalisation of banks has become necessary following the recorded improvements in the Ghana economy, with experts describing the move as timely. ?The development, though, is expected to see the consolidation of some banks that may not be able to raise the minimum capital.

It will be remembered that in 2012 after the BoG's directive to have all banks recapitalised, the likes of the Trust and Intercontinental Banks were consolidated into Ecobank and Access Bank respectively.

?The BoG is expected to make a formal announcement of the change in minimum capital to the Ghana Association of Bankers (GAB) on Monday, September 11.