The Bank of Ghana says it will not back down on the minimum capital requirement for banks.
Though the threshold was raised in 2009 to 60 million cedis with locally-owned banks expected to achieve this by 2012, several of the local banks are struggling to meet the requirement.
Some bankers and economists have also complained the directive amounts to forcing the local banks to grow artificially against their will with serious implications for the industry.
But speaking at the just ended Ghana ended Ghana Finance and Investment conference, Central Bank Governor, Kwesi Amissah Arthur, says the banks that are unable to meet the requirement could opt for the stock market.
He said increased capitalization “has enabled banks to take on large transactions which are vital to the economy.”
The increase in the stated capital for banks has already seen the takeover of two local banks by foreigners.
Joy Business has also gathered that about four local banks are having difficulties meeting the December deadline.
—Myjoyonline.com
