ACCRA, The Bank of Ghana (BoG) will announce in coming weeks the new capital requirements for the country’s banking sector, with Dr Ernest Addison, the central bank’s governor, saying it is necessary to engage with the banks before the announcement.

Addressing a business luncheon held in conjunction with the 36th annual general meeting of the Ghana Association of Bankers here Monday, he called on the banks to prepare adequately because there would be a substantial increase in capital requirements.

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

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

Alhassan Andani, the president of the association, said the government had agreed to exclude State-owned enterprises (SOEs) from the Treasury Single Account (TSA), a unified structure of government bank accounts which enables consolidation and optimum utilization of government cash resources.

He said the government had been in talks with the association to look 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.

Meanwhile, the BoG has revoked the licences of two banks — UT Bank Ltd and Capital Bank Ltd — because of severe impairment of their capital. The central bank says it has also approved a Purchase and Assumption transaction with GCB Bank Ltd, Ghana’s second largest commercial bank by assets, which transfers all deposits and selected assets of UT Bank and Capital Bank to GCB Bank.

A BoG statement said the remaining assets and liabilities would be realised and settled through a receivership process to be undertaken by Messrs Vish Ashiagbor and Eric Nana Nipah of PricewaterhouseCoopers (PwC). The statement assured customers of UT Bank and Capital Bank that they would continue to have access to their funds.