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THE BANK OF GHANA MORE THAN TREBLED MINIMUM CAPITAL REQUIREMENTS FOR BANKS

THE BANK OF GHANA MORE THAN TREBLED MINIMUM CAPITAL REQUIREMENTS FOR BANKS

The Bank of Ghana announced on September 11, 2017 a new minimum capital requirement, as part of a holistic financial sector reform plan to further develop, strengthen, and modernize the financial sector to support the government’s economic vision and transformational agenda.

As a first step, the Bank revoked the licenses of two insolvent banks to ring-fence a potential spillover threat to the rest of the financial sector and also to prepare the grounds for other reforms. At the same time, the Bank of Ghana has agreed with identified banks, a roadmap for recapitalization in accordance with the capital restoration plans stipulated by the Bank and Specialised Deposit Institutions Act, 2016 (Act 930).

Looking ahead, 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.

In line with the above, 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 effective Monday, September 11, 2017. under the following conditions:

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

All banks which have been granted “Approval in Principle” shall comply with the new minimum capital levels by the end of December 2018.

All pending applications for banking licence i.e. without “Approval in Principle” are required to meet the new minimum capital requirement of GHS400 Million.

Minimum capital required in other ECOWAS countries is:

COUNTRIES

MINIMUM CAPITAL

 

 

Local Currency

Equivalent in USD

Nigeria

-       Regional banks

-       National banks

-       International

 

NGN 10 Billion

NGN 25 Billion

NGN 50 Billion

 

USD 28 Million

USD 70 Million

USD 140 Million

Ghana

GHS 400 Million

USD 91 Million

Benin

XOF 10 Billion

USD 18 Million

Burkina Faso

XOF 10 Billion

USD 18 Million

Côte D'ivoire

XOF 10 Billion

USD 18 Million

Guinea Bissau

XOF 10 Billion

USD 18 Million

Mali

XOF 10 Billion

USD 18 Million

Niger

XOF 10 Billion

USD 18 Million

Senegal

XOF 10 Billion

USD 18 Million

Togo

XOF 10 Billion

USD 18 Million

Guinea

GNF 100 Billion

USD 11 Million

Liberia

 

USD 10 Million

Cabo Verde

CVE 800 Million

USD 8,6 Million

The Gambia

GMD 200 Million

USD  4,4 Million

Sierra Leone

SLL 30 Billion

USD  4 Million 


Published at 19/09/2017

  AMF .



LIST OF COUNTRIES

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