The Chartered Institute of Bankers (CIB) is highly confident of the industry’s ability to meet the proposed increase in the minimum capital requirement for banks.

The Institute contends that the changing phase of banking requires huge investments hence an increase should position its members to meet the challenge.

Citi Business News has learnt that the minimum capital requirement for banks is likely to rise to at least 200 million cedis.

This will represent almost a hundred percent increase from the current figure of 120 million cedis.

The President of the Chartered Institute of Bankers, Patricia Sappor, tells Citi Business News the increase should deepen the financial sector.

“We think that this is a step in the right direction, the changing phase of banking to digital requires huge investments and that the review of the minimum capital should help banks to meet the huge capital involved,” she stated.

Madam Patricia however opined that the regulator could review the capital requirements to suit the various categories of banks so as not to distort operations in the industry.

“What we think is that the central bank would have a way to manage the indigenous banks because for the banks that are not good in meeting the minimum capital requirement, the Bank of Ghana will have a way of accommodating them in one way or the other so that they will be able to operate depending on the sectors that they focus on,” she observed.

“For instance a bank that engages in SME financing would not have to be given huge obligation to meet compared to a bank that engages in offering credit to industries in the oil and gas sector.”

Some industry analysts have described the over thirty-three banks operating in Ghana as an over concentration of banks.

In their opinion, the issue has made the country overbanked despite the relatively smaller population size compared to other bigger economies across the sub-region and continent.

But the CIB President is hopeful the BoG will work to meet the interest of all stakeholders in the financial space.

“I believe the central bank will vary the options rather than having a blanket increase for all banks.”

By: Pius Amihere Eduku/citibusinessnews.com/Ghana