…1000 bankers to lose job
…Bank managers having sleepless nights
…BoG under pressure to protect depositors
Managers of indigenous banks continue to have sleepless night over meeting the December 31, 2018 deadline for the new minimum capital requirement announced by the Bank of Ghana.
Currently there are 34 universal banks in Ghana. Of this figure, 19 of them have foreign majority share ownership while 15 have local majority share ownership. Out of the 19 foreign banks, seven are Nigerian banks. Out of the 15 local banks, 10 are 100 per cent indigenous (100 per cent Ghanaian owned).
The indigenous bank are pledging with the Central Bank to extend the duration, but the Governor told them to consider merging their operations in order to meet the capital requirement of GHC 400m. But managers of the aforementioned banks said any attempt to force the indigenous banks to merge could lead to loss of employment of between 500 and 1000 persons.
Such lay-offs, according to policymakers, could undermine the government’s efforts to create employment and also kill local entrepreneurial initiative.
“Since the banks to be merged are engaged in similar activities, have similar organizational structures with proximity of branch locations, the merged entity would lead to a close down of some branches and staffs lay-offs,” a petition sent to President Nana Akuffo Addo, had said.
The petition continues: “Given the levels of capital of the indigenous banks, two or three indigenous banks will have to merge to attain the new minimum capital. It is unlikely that a successful merger can be achieved within a relatively short period of one year, considering the due diligence activities that have to be undertaken before mergers are consummated.”
Please read the full petition submitted to the President by the Association of Indigenous Universal Banks
