Comply or merge: Council of State tells indigenous banks

File: Members of the Council of State with President Akufo-Addo[/caption] The Council of State is advising indigenous banks who are unable to meet the Bank of Ghana’s capital requirement to consider merging with other banks. This, the Council said, would enable banks in the country to compete favourably and also help the central bank to sanitise the sector. The Council in a statement signed by its Acting Secretary, Mrs. Peace A. P. Okantey however urged the Bank of Ghana to broaden its avenues for public engagement. The Council of State through a petition submitted by Ghana’s indigenous Banks to the President with a copy to the Council on Thursday, April 12, 2018, met the Governor of the Bank of Ghana (BoG) to discuss topical issues concerning the banking sector. The Council of State was briefed on the position of the Bank of Ghana regarding challenges affecting the operations of the indigenous Banks and measures so far adopted by the BoG. “The Council advised indigenous Banks which could not meet the Bank of Ghana’s capital requirement to enter into mergers in order to compete favourably and ensure sanity in the banking sector,” the Council said in the statement. The BoG in December 2017, increased its minimum capital requirement for commercial Banks from GHC120 million to GHC400 million. Below is the Council of State’s statement The Council of State today Thursday 12th April, 2018 met with the Governor of the Bank of Ghana (BoG) to discuss topical issues concerning the banking sector. The Council took the opportunity to discuss a petition submitted by Ghana’s indigenous Banks to the President with copy to the Council. The Council of State was briefed on the position of the Bank of Ghana regarding challenges affecting the operations of the indigenous Banks and measures so far adopted by the Bank of Ghana. After extensive deliberations and a careful examination of available options the meeting urged the Bank of Ghana to intensify its due diligence, monitoring and enforcement processes to safeguard the interest of depositors. The Council advised indigenous Banks which could not meet the Bank of Ghana’s capital requirement to enter into mergers in order to compete favourably and ensure sanity in the banking sector. While supporting measures so far taken by the Bank of Ghana to ensure prudence in the banking sector, the Council urged the Bank to broaden its avenues for public engagement. Ultimately depositors interest must be protected at all times and public needs to be assured to boost confidence in the banking sector. Signed Peace A. P. Okantey (Mrs) Ag. Secretary to the Council. Source: 3news.com | Ghana]]>