Accra: The Bank of Ghana (BoG) and the Apex Bank, formerly known as ARB Apex Bank PLC, have initiated a detailed review process of the transition plans submitted by community banks in Ghana. These plans, submitted six weeks ago, outline each bank's strategies for recapitalisation or merger, as required by the BoG's new guidelines.
According to Ghana Web, the review is part of a regulatory assessment by the BoG and the Apex Bank, focusing on the financial viability and structural rationale of each bank's proposal. This is in line with the BoG's Guideline on the Revised Microfinance Sector Framework, 2026, which mandates banks that cannot meet the new minimum capital requirements of GHS5 million or GHS10 million to either combine operations or exit the market orderly.
Banks that are capital-deficient were required to declare their intended course of action-whether standalone compliance, consolidation, or asset transfer-by June 30. This was the first milestone in a series of deadlines, with the next one on September 30, when banks must provide a binding progress update on their consolidation efforts. The final deadline is December 31, 2026, by which all banks must meet capitalisation requirements and align their corporate names.
The BoG has not yet disclosed how many banks have chosen to comply independently or pursue mergers. However, the Association of Rural Banks (ARB) has publicly stated that many of the 145 newly transitioned community banks face challenges in increasing their capital from the previous GHS1 million to the new thresholds. This situation is anticipated to lead to a wave of consolidations, especially among smaller banks in the same regions, to prevent forced asset transfers or freezes.
Under the Guideline on the Revised Microfinance Sector Framework, 2026, the BoG sets two distinct capital requirements based on factors like institutional origin and operational location. The GHS10 million requirement is for new or existing urban banks facing high operational costs and competitive pressures, while the GHS5 million threshold is for rural banks, to reduce systemic stress in city clearing networks.
The BoG mandates that all banks, regardless of the threshold, maintain at least 30% local share ownership and meet governance requirements by the December 31, 2026 deadline.
The BoG's framework allows for mergers, where community banks can pool resources to meet the GHS5 million capital requirement. However, no merger can proceed without BoG's approval, and all must comply with the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930). Mergers must ensure the protection of customer deposits and maintain business continuity.
Should a bank fail to merge or recapitalise by the deadline, the BoG may impose lending and expansion restrictions, transfer assets, or revoke licences to protect depositors.