Ghana banks’ capitalization reaches GH¢1.65b in three years – Amissah-Arthur

Banks operating in Ghana have re-capitalized to the tune of GH¢1.65 billion in three years, and this has quadrupled the country’s bank capitalization from GH¢445.8 million.

Mr. Kwesi Amissah-Arthur, Governor of the Bank of Ghana, has said at the recently held Euromoney Conference in Accra, that the re-capitalization policy provided a much-needed boost to the economy with the near quadrupling of bank capitalization from GH¢445.8 million to about GH¢1.65 billion in the three years between December 2008 and December 2011.

“Banks’ reserves have also doubled from GH¢666.9 million to GH¢1.38 billion over the same period. The increased capitalization has enabled banks to take on large transactions vital to the economy,” he said.

The central bank issued new regulations in 2008 asking banks owned by Ghanaians to recapitalize to the tune of GH¢25 million by 2010 and raise it to GH¢60 million by 2012 and banks with foreign owners operating in Ghana were required to raise GH¢60 million by 2010.

Although foreign owned banks were given a one year period within which to meet the directive, domestically controlled banks were expected to recapitalise to GH¢25 million by December 2010 and subsequently reach the GH¢60 million by December 2012.

As at December 2011, 16 of the 27 commercial banks licensed to do business in Ghana have so far raised the new stated capital requirement of GH¢60 million as required by the regulator, the governor said.

The Bank of Ghana has also reiterated that it will not extend the deadline it has set for commercial banks in the country to meet the new stated capital base requirement of GH¢60 million. The new deadline the central bank says is the end of 2012.

By Emmanuel K. Dogbevi