BoG Cautions Akufo-Addo Against Interfering In Minimum Capital Requirement For Banks

Dr Ernest Addison, Governor of the Bank of Ghana.

The Bank of Ghana says any attempt by the president to intervene in the extension of the deadline for the raising of the minimum capital requirement by local banks will be an indictment on the integrity of the Central bank.

This follows calls by Some indigenous universal banks who made a passionate appeal to the President to intervene to ensure that the Bank of Ghana extends its December 2018 deadline for local banks to recapitalise from GH¢120 million to GH¢400 million to next four years.

According to the banks which have come together to form an association christened: The Association of Indigenous Universal Banks, the period required by the central bank for them to increase their minimum capital by the close of the year was too short and posed a risk to their business.

But a Former Deputy Governor of the central bank, Emmanuel Asiedu Martey explains the board of the central bank are predominantly political appointees which the president should consider before taking any such action.

Meanwhile a 10-member committee has been formed by President Akufo-Addo following a petition by the Banks.

It is expected to commence work on Tuesday, April 17, 2018 and complete work on May 26.

The committee is made of three members from the Bank of Ghana, three members from the Ministry of Finance and three members from the local banks.

This follows an appeal some local banks sent to the president for an extension of the timeline in meeting the minimum capital requirement from one year to four years.

The local banks want the deadline to be extended from December 2018 to 2022.

 

Source: Ghana/myxyzonline.com/93.1MHZ