BANKS IN GHANA REMINDED OF NEED TO MEET MINIMUM CAPITAL REQUIREMENT

ACCRA- The directive of the Bank of Ghana (BoG) to all banks in the country to comply with the minimum paid-up capital of 400 million cedis (about 90 million US dollars) by this December still stands, says the central bank’s Deputy Governor, Elsie Addo Awadzi.

Speaking at a breakfast meeting for stakeholders from the banking community, academia and the media here Tuesday, she said the setting up of a committee of stakeholders by President Nana Addo Dankwa Akufo-Addo to find a way of supporting indigenous banks had nothing to do with the directive.

Our directive stands. We have had two years of engagement with stakeholders, she told the meeting, which was held on the theme, Building a Resilient Banking Sector to Support a Vibrant Ghanaian Economy. The meeting formed part of the BoG’s efforts to engage key stakeholders with the aim of reaching common ground on the state of the country’s banking sector and the way forward.

Awadzi said the BoG remained committed to restoring trust and confidence in the banking system, as well as promoting a strong and resilient banking sector to support robust macro-economic growth.

It remains our view that this new capital floor will help make banks stronger and resilient, and position them to better support the Ghanaian economy, she said, adding that the central bank would ensure a smooth transition to the new capital requirement by December 2018.

Awadzi said the BoG would also address specific risks from high non-performing loans (NPL), weak corporate governance, and poor risk management systems, as well as continue to roll out the Basel II/III supervisory framework, and ensure implementation of IFRS 9 regulations by banks.

The Bank would also issue and strictly enforce guidelines on fit and proper person for bank shareholders, directors, and key management personnel, to promote high standards in the industry; strengthen regulation and supervision of bank holding companies and affiliate companies to reduce intra-group exposures.

She said the central bank would continue to strengthen its Banking Supervision Department through capacity building and improved supervisory processes, in order to identify early warning signs of bank distress and to take prompt corrective action to address such risks.

Source: NAM NEWS NETWORK

BANKS IN GHANA REMINDED OF NEED TO MEET MINIMUM CAPITAL REQUIREMENT

ACCRA- The directive of the Bank of Ghana (BoG) to all banks in the country to comply with the minimum paid-up capital of 400 million cedis (about 90 million US dollars) by this December still stands, says the central bank’s Deputy Governor, Elsie Addo Awadzi.

Speaking at a breakfast meeting for stakeholders from the banking community, academia and the media here Tuesday, she said the setting up of a committee of stakeholders by President Nana Addo Dankwa Akufo-Addo to find a way of supporting indigenous banks had nothing to do with the directive.

Our directive stands. We have had two years of engagement with stakeholders, she told the meeting, which was held on the theme, Building a Resilient Banking Sector to Support a Vibrant Ghanaian Economy. The meeting formed part of the BoG’s efforts to engage key stakeholders with the aim of reaching common ground on the state of the country’s banking sector and the way forward.

Awadzi said the BoG remained committed to restoring trust and confidence in the banking system, as well as promoting a strong and resilient banking sector to support robust macro-economic growth.

It remains our view that this new capital floor will help make banks stronger and resilient, and position them to better support the Ghanaian economy, she said, adding that the central bank would ensure a smooth transition to the new capital requirement by December 2018.

Awadzi said the BoG would also address specific risks from high non-performing loans (NPL), weak corporate governance, and poor risk management systems, as well as continue to roll out the Basel II/III supervisory framework, and ensure implementation of IFRS 9 regulations by banks.

The Bank would also issue and strictly enforce guidelines on fit and proper person for bank shareholders, directors, and key management personnel, to promote high standards in the industry; strengthen regulation and supervision of bank holding companies and affiliate companies to reduce intra-group exposures.

She said the central bank would continue to strengthen its Banking Supervision Department through capacity building and improved supervisory processes, in order to identify early warning signs of bank distress and to take prompt corrective action to address such risks.

Source: NAM NEWS NETWORK