The Council of State has advised indigenous banks which cannot meet the Bank of Ghana’s capital requirement to enter into mergers in order to compete favourably and ensure sanity in the banking sector.
This was after it met the Governor of the Bank of Ghana (BoG) to discuss topical issues in the banking sector.
A statement issued and signed Peace A.P. Okantey, acting Secretary to the Council, said the Council took the opportunity to discuss a petition submitted by indigenous banks to the President copied to the Council.
It said the Council of State was briefed on the position of the Bank of Ghana regarding challenges affecting the operations of indigenous banks and measures so far adopted.
After extensive deliberations and careful examination of available options, the Council urged the BoG to intensify its due diligence, monitoring and enforcement processes to safeguard the interest of depositors.
“While supporting measures so far taken by the Bank of Ghana to ensure prudence in the banking sector, the Council urges the bank to broaden its avenues for public engagement.
“Ultimately, depositors’ interests must be protected at all times and the public needs to be so assured to boost confidence in the banking sector.”
The directive by the Central Bank to all 32 banks operating in the country to raise their minimum capital to GH¢400 million from the recent GH¢120 million appears to be troubling them, as it continues to expose the skeletons in their cupboards.
Source: Daily Guide
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Good call from the council of state. Too much smaller banks dotted around the place. Most of them resort to syndication whenever big ticket transaction is on the table....so you find them coming together to fund such transaction.What at all is preventing these smaller locals banks to merge?....is it greed or the local champion in my small corner phenomena?.....and who said when they merge they can't finance agriculture and Ghanaian related companies?....if the government is really serious of making Ghana the financial hub of West Africa...I would advice the president not to entertain such petition,not at all.It even amounts to the government interfering the affairs of the Bank of Ghana....that could even have repercussions for the economy in terms of how foreign investors perceive our financial market. Mr President please stay away and let the Bank of Ghana handle the situation. The local banks should either raise the needed capital or merge.It is as simple like that. I'm a proud Ghanaian and i want our financial market to compete with the rest of the world. cheers.
we comment and you will say kids in the country arent respectful, i beg ooh , how many among them in the council more much about banking or finance and those that know, how deep are they?. werent they in Ghana when people were been robed, raped, gasping for job, Australia visa scandal etc. the council is becoming ***barred word***, i wish the council should be only former presidents, the king and head of every regional house of chiefs, head of the moslem or islam ie chief imam and head of the christian council. any other who thinks is wise must be advisor to the president privately or to ministry, we waating time on these so called council. if they wanna do the work of the BOG governor, they must let us know. such must be private advise to the governor of BOG or heads of the banks not to come and secretary sign, thrash