• Home
  • Business
  • Struggling Ghanaian Banks tasked to Submit Merger Plans Ahead of Recapitalization Deadline
Image

Struggling Ghanaian Banks tasked to Submit Merger Plans Ahead of Recapitalization Deadline

The Central Bank of Ghana has directed struggling banks which are unable to meet the ¢400 million recapitalization to submit their merger proposals for consideration.

Governor of the Bank, Dr Ernest Yedu Addison said the move will enable the regulator put measures in place for such banks to strengthen their operations with other banks after the December 31, 2018, deadline.

Speaking on CNBC at the AFDB Annual meetings in Busan, South Korea, he said Bank of Ghana (BoG) has tasked the banks, “that are not able to raise that capital should come together in the form of mergers.

“We are ready to accept an indication of how you intend to put yourself together to meet that minimum capital requirement.”

According to him, the idea is not to say that these banks should completely merge by the deadline given but he explained that “there are operational capital difficulties in doing that, integrating the IT system, staff, and all of those things.

“Those are operational issues that can be dealt with in the longer time frame.”.

According to the Governor, it is up to the struggling banks to show their commitment to merge as he reiterated that the deadline won’t be extended.

“We just want the banks to come up with the indication that, this is what we are planning to do. These are the banks that are planning to come together and then the rest will be implemented over a longer period,” he added.

Related Posts

Genesis Energy,Desert Tech. announce clean energy alliance

Genesis Energy Holding, a Pan-African leader in clean energy infrastructure, and Desert Technologies Industries Factory CJSC, a Saudi-based…

Mouka reaffirms raw material leadership in Africa

Mouka, Nigeria’s leading manufacturer of quality sleep solutions and a proud member of the Dolidol International group, has…

Agboola advocates stronger cross-border infrastructure

Flutterwave CEO and Founder, Olugbenga “GB” Agboola , has called for accelerated investment in Africa’s cross-border payment infrastructure…

Munga increases stake in Equity Group by over $1.2m

Equity Group founder, Peter Munga, has made a strong return to the lender’s shareholder register, purchasing 3.64 million…

Leave a Reply

Your email address will not be published. Required fields are marked *