Business News of Monday, 24 September 2018
Barely three months to the deadline for meeting the minimum capital requirement for banks still presents an opportunity for more banks to hit the mark.
That is the assertion of Banking Consultant, Nana Otuo Acheampong.
He explains to Citi Business News the banks whose capital may not have reached the 400 million cedis level, still have ample time to resort to any of the options available to them.
Since September 2017, commercial banks in the country have been racing against time to recapitalize.
The banks have resorted to various options such as fresh capital injection from shareholders, raising funds from the stock market or merging.
About sixteen banks have so far met the requirement with the remaining working round the clock to beat the deadline.
The 400 million cedis minimum capital level is one of the reforms that the Bank of Ghana is pursuing to reform the banking industry.
Presently, Omnibank and Sahel Sahara banks are the two banks undergoing processes to merge to meet the capital level.
If any bank is unable to meet the capital level, it will either lose its license and drop to a Savings and Loans category or may opt to completely fold up its business.
Perhaps the three months left to December may qualify as a short period.
But Nana Otuo Acheampong tells Citi Business News the time may just be optimum.
“The banks have one or two options; either the Bank of Ghana will merge you by force or it will revoke your license and give you the next step below which is a Savings and Loans category that is if the bank still wants to continue trading.”
“But if the bank wants to part shop, the regulator cannot force it since it is a free market economy. What the objective is not to find any depositor losing a pesewa. I think there’s still time; a lot can happen within three months,” he added.