The Governor of the Bank of Ghana (BoG) Dr. Ernest Addison has disclosed that 19 banks are likely to meet the 400 million cedis capital requirement by end of the year.
This indicates an increase from a previous 15 figure announced by the governor earlier this year.
As at the beginning of the year 2018, Ghana had about 34 banks.
Speaking at press conference to announce the monetary policy rate after the Monetary Policy Committee (MPC) meeting, Dr. Addison explained that the number increased due to improved capitals of the additional 4 banks.
“Since the last MPC in terms of the progress report of the recapitalization exercise, I think we have seen further improvement in the numbers of banks that are probably going to meet the 400 million cedis minimum capital requirement, “he said.
“If I stuck my neck out on 15 banks as of the last MPC, Maybe I can stick my neck out for 19 banks at this round of the MPC. There are improvement. We are beginning to see more and more banks being likely to meet that particular minimum capital requirement,” he stressed.
Dr. Addison pointed out that the improvement is encouraging and confirms the turnaround of the financial system.
Banks in the country are required to raise their capital requirement from 120 million cedis to 400 million cedis.
Some banks have already met the requirement by transferring funds from their income surplus.
Others are planning mergers to meet the requirement before the deadline of 31st December 2018.
Meanwhile, the Bank of Ghana has already consolidated 5 banks into the Consolidated Bank Ghana.