GHANA: THE RESULT OF THE BANKS RECAPITALISATION EXERCISE

the Bank of Ghana announced for the information of Banks and the general public that it has revised upward the minimum paid up capital for existing banks and new entrants from GHS120 Million to a new level of GHS400 Million or USD90 Million, effective Monday, September 11, 2017. The minimum capital required in WAMU is 10 billion FCFA, or 18 million USD.

 

According to the Bank of Ghana (BoG), banks would require a more sophisticated and robust capital framework, adequate to transform the banking sector and consistent with the growing risks, levels of sophistication and exposure banks are currently facing.

 

All existing banks have up to December 31, 2018 to meet the new minimum paid up capital requirement.

 

At this date, the situation is as follows:

a)    Sixteen (16) banks have met the new minimum paid-up capital requirement of GH¢400

million mainly through capitalisation of income surplus and a fresh capital injection : Zenith Bank, Ecobank, GCB Bank, Stanbic Bank, Standard Chartered Bank, Barclays, Bank, Access Bank, Consolidated Bank, Republic Bank, Fidelity Bank, UBA, Societe Generale, GT Bank, FBN Bank, Cal Bank, and Bank of Africa ;.

 

b)    Six (6) banks decided to merge to form three new banks: First Atlantic Merchant Bank Limited and Energy Commercial Bank; OmniBank Ghana Limited and Bank Sahel Sahara Ghana; First National Bank and GHL Bank Limited. The three new banks meet the new minimum capital requirement;

 

c)     Four (4) other banks received fresh equity capital from a holding company created for this purpose, Ghana Amalgamated Trust Limited (GAT); these are two state-owned banks (Agricultural Development Bank, National Investment Bank), Universal Merchant Bank and Prudential Bank;

 

d)    One (1) bank is downgraded to a savings and loans company : GN Bank ;

 

e)    One (1) bank decided to voluntarily wind up its operations in Ghana on 31 December 2018; it's Bank of Baroda.

To ensure an orderly exit, and to safeguard the interest of depositors and customers, the Bank of Ghana has approved an Assumption Agreement between Bank of Baroda (Ghana) Limited and Stanbic Bank Ghana Limited under which the latter will assume all deposits and selected loan assets of the bank. The Bank of Ghana will closely monitor the transition

 

f)     Seven (7) banks have had their banking licenses revoked in recent years ; These are Heritage Bank Limited, Premium Bank Limited, Sovereign Bank Ghana, Construction Bank Ghana Limited, The Beige Bank Limited, Royal Bank Limited, UniBank Ghana Limited, whose assets and liabilities were used to create Consolidated Bank Ghana.

 

Bank of Ghana (BoG) had already revoked the licenses of UT Bank and Capital Bank in 2017 and approved a Purchase and Assumption Agreement with GCB Bank.

 

As of January 1, 2019, there are 23 universal banks in Ghana, compared with 36 in previous months; 23 banks financially stronger.

  

 

 

BEFORE CAPITALISATION	AFTER CAPITALISATION
1.Zenith Bank, 2.Ecobank 3.GCB Bank, 4.Stanbic Bank, 5.Standard Chartered Bank, 6.Barclays, Bank, 7.Access Bank, 8.Consolidated Bank, 9.Republic Bank, 10.Fidelity Bank, 11.UBA, 12.Societe Generale, 13.GT Bank, 14.FBN Bank, 15.Cal Bank, 16.Bank of Africa	1.Zenith Bank, 2.Ecobank 3.GCB Bank, 4.Stanbic Bank, 5.Standard Chartered Bank, 6.Barclays, Bank, 7.Access Bank, 8.Consolidated Bank, 9.Republic Bank, 10.Fidelity Bank, 11.UBA, 12.Societe Generale, 13.GT Bank, 14.FBN Bank, 15.Cal Bank, 16.Bank of Africa	16 banks have met the new minimum paid-up capital requirement of GH¢400 million
17.First Atlantic Merchant Bank Limited 18.Energy Commercial Bank  19.OmniBank Ghana Limited 20.Bank Sahel Sahara Ghana  21.First National Bank 22.GHL Bank Limited	17.First Atlantic Merchant Bank Limited / Energy Commercial Bank  18.OmniBank Ghana Limited / Bank Sahel Sahara Ghana  19.First National Bank / GHL Bank Limited	6 Banks that have merged
23.Agricultural Development Bank 24.National Investment Bank 25.Universal Merchant Bank 26.Prudential Bank	20.Agricultural Development Bank 21.National Investment Bank 22.Universal Merchant Bank 23.Prudential Bank	4 Indigenous banks benefitting from the GAT initiative
27.Heritage Bank Limited 28.Premium Bank Limited 29.Sovereign Bank Ghana 30.Construction Bank Ghana Limited 31.The Beige Bank Limited 32.The Royal Bank Limited 33.UniBank Ghana Limited		7 banking licences revoked in 2018
34.UT Bank 35.Capital Bank		2 banking licences revoked in 2017
36.Baroda Bank		1 Bank Exiting on account of strategic reasons

 

Published at 08/01/2019

  AMF .

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