By Sheila WILLIAMS
The Bank of Ghana’s data has shown a strong growth in the bank’s total paid-up capital – rising to GHc 9 billion as at end of February, 2019.
The Banking Sector Report for March 2019 revealed that, last year’s increase in minimum capital requirement saw an increase in the bank’s paid-up of about Ghc 9.02 billion, which represents a total of 78.4 percent increase Year-on-year.
A number of reforms has been embarked to boost the soundness of the financial sector, by the Central Bank of Ghana. Notable among the reforms was the increase in minimum capital requirement from GHc120 million to Ghc400 million, which was more than 230 percent increase.
The Central Banks reforms made banks facing insolvency either to be collapsed or taken over by stronger competitors.
The reforms saw nine indigenous banks being affected which leads to the revocation of their licenses with others opting for mergers in order to meet the minimum capital requirement set by the Central Bank of Ghana.
