Business News of Wednesday, 1 August 2018
At least three local banks are likely to cease to be in operations today as the Bank of Ghana readies to announce banks that have been unable to meet its new minimum capital requirement of GHC400 million.
According to Starrfmonline.com sources, the affected banks have not been in existence for long with their operations spanning between 2 and 5 years.
The development comes as the Construction Bank voluntarily folded up its Ghana operations on Tuesday August 31,2018.
In a statement sighted by Starrfmonline.com, the bank said: “The Board would further like to inform all customers that should they require additional information and assistance, they may contact the Bank’s Head Office branch at The Octagon, Central Business District, Accra.
“The Construction Bank would like extend it’s sincere thanks to all our cherished customers and stakeholders for their faithful support of our vision in doing business with us”
The Central Bank increased the minimum capital requirement for banks from GH¢120 to GH¢400 million to improve stability in the banking industry whilst growing the industry.
Analysts and market watchers believe few but larger banks will help accelerate the country’s economic growth quickly since they can underwrite big ticket transactions as well as remain liquid and stronger. The few but stronger banks they believe will also help to reduce cost of credit, access to credit, non-performing loans, amongst others.
There are about 24 and 19 universal banks in Nigeria and South Africa, compare to the 34 banks in Ghana though South Africa and Nigerian economies are far bigger than Ghana. However, there are foreign banks with representative offices in these two and populous countries.