The local banks are in a bid 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 stating that,although they support the idea of recapitalisation, the timeframe to raise the requsite capital stipulated by the Bank of Ghana is too short and hence the extension to enable them effectively comply with this new directive.
The Managing Directors and Chief Executive Officers of the local banks have said they will be in a better position to recapitalise in installments of four years.
By this, the local banks have presented a letter to the President stating that they can recapitalise up to GH¢170million by the end of 2018,GH¢220 million by the end of 2019, GH¢280 million in 2020, GH¢340 million in 2021 and GH¢400 million in 2022.
For now, it is unclear when the request will be implemented as the banks have till December 2018 per the schedule provided by the Bank of Ghana.
In September 2017, the BoG demanded of the universal banks to up their capital to GH¢400 million. It gave them one year three months to fully comply with the deadline in December 2018.
The reason given by the central bank for that directive was to, among other things, get the banks to be able to undertake big-ticket transactions.
Last modified on Tuesday, 10 April 2018