Home   >   Business   >   Business News   >   201804
Reduction of Non-Performing Loans Will Be Compulsory – BOG   
  << Prev  |  Next >>
Comments ( 0 )     Email    Print
Related Stories
The Central Bank has said apart from effort to ensure a smooth transition into the new capital requirement of GHC 400 million, commercial banks will be charged to significantly reduce non-performing loans.

It is believed the aim of raising the capital requirement will not yield the needed result if the monies are invested in unproductive ventures.

Speaking at Fidelity Bank’s Customers Appreciation Dinner, the Second Deputy Governor of the Bank of Ghana, Elsie Awadzi said the latest move including the hike on the minimum capital requirement will lead to the building of a robust banking sector.

“The increased minimum capital requirement of GHC 400 million as well as the move to Basel II and III are all part of the Bank of Ghana’s effort to strengthen the banking sector”, she said.

Acknowledging that a lot remains to be done on the regulatory front, she stated that “in addition to ensuring a smooth transition to the new capital requirement by December 2018, the Bank of Ghana will also ensure that the banks bring down their non-performing loan level”.

The Central Bank, she further noted, will demand that banks improve their governance and risk management systems including cyber and information security related risks.

She continued that the Central Bank will strengthen its supervisory framework to ensure that “early signs of bank distress” are identified and addressed without any regulatory fore bearings”.

Meanwhile, Fidelity Bank has indicated it is close to meeting the new capital requirement.

“So far, we haven’t lost sleep at all on the new minimum capital requirement of GHC 400 million”, Fidelity Bank’s Managing Director, Jim Baiden.

That, he said, is because the bank’s current capital position “is substantially close to the new minimum” stressing that “we will be able to meet the new minimum capital requirement before the end of this year”.

He said the bank’s strong corporate governance system as well as disciplined prudential lending culture ensures that customer’s deposits are safe and “we are able to meet matured obligations to our customers at all times”.
Source: The Daily Statesman

Comments ( 0 ): Post Your Comments >>

Disclaimer: Opinions expressed here are those of the writers and do not reflect those of Peacefmonline.com. Peacefmonline.com accepts no responsibility legal or otherwise for their accuracy of content. Please report any inappropriate content to us, and we will evaluate it as a matter of priority.