BoG to announce new capital requirements in September

Accra, The Bank of Ghana (BoG) in the coming weeks will announce a new capital requirements for the banking sector.

Dr Ernest Addison, the Governor of the Bank said it was necessary to engage with the banks before the announcement.

Dr Addison was speaking at the business luncheon after the 36th annual general meeting of the Ghana Association of Bankers in Accra.

He called on the banks to prepare adequately because there would be a substantial increase.

Mr Ken Ofori-Atta, the Minister of Finance said the pronouncement was a re-examination of the industry.

He urged the Association to create a working group between the Ministry and the BOG to examine the industry and provide answers to some of the pressing challenges.

“Let us put our heads together to transform the sector, “he added.

He said the increase was crucial to help make Ghana an international financial services hub in the sub-region.

Mr Alhassan Andani, the President of the Ghana Association of Bankers said government had agreed to exclude the State Owned Enterprises from the Treasury Single Account (TSA)

The TSA is a unified structure of government bank accounts, which enables consolidation and optimum utilisation of government cash resources.

It is set to linked bank accounts through, which the government recognises all its receipts and payments and obtains a consolidated view of its cash resources at the end of the day.

He said government had been in talks with the Association looking at the impact of the implementation of the TSA for the industry.

“We are grateful looking at the kind of engagement we had, “he added.

He said the TSA would only be impacted by the accounts that were affected by tax revenue allocated to various pool, whether earmarked funds.

He said the level of co-operation between government and the Association in the implementation process was great.

He said the Association also made a number of suggestions to government which would turn the TSA into a pool of accounts sitting at the Central Bank.

Members would speed up the payments for goods and services supplied to government by the private sector.

“By and large, TSA will not really impact the industry,” he added.

Source: Ghana News Agency