The Council of State has given backing to measures taken by the Bank of Ghana (BoG) to protect the interests of depositors. It asked that it continues to strengthen its regulation enforcement to ensure sanity in the banking sector.
This was contained in a press release signed by the acting secretary of the council, Mrs. Peace A.P. Okantey. It followed a meeting held to discuss with the governor a petition sent to the President by Ghana’s indigenous banks, a copy was given to the council.
The banks are unhappy about the new minimum capital requirement, which has been pegged at GH¢400 million by the central bank.
The release said the council, after extensive deliberations and careful examination of available options, urged the BoG to intensify its due diligence, monitoring and enforcement processes to safeguard the interest of depositors.
It additionally asked that it broadened its avenues for public engagement.
“Ultimately, depositors’ interests must be protected at all times and the public needs to be assured to boost confidence in the banking sector.”
The council advised indigenous banks unable to meet the BoG’s capital requirements to enter into mergers.
The BoG has raised the minimum paid up capital for existing banks and new entrants from GH¢120 million to GH¢400 million. This represents an increase of 233.33%, and all existing banks, together with new entrants, have up to the end of December 2018 to comply with the new capital requirement.
According to the BoG, this has become necessary to strengthen and modernize the financial sector to support the government’s economic transformation agenda.