THE Bank of Ghana is to issue universal banking licence to banks that meet the prescribed capital requirements of ?70 billion, the First Deputy Governor of the bank, Mr Emmanuel Asiedu-Mante has said.

The move by the country’s Central Bank, is to engender fresh competition for retail banking and deepening the financial sector as well as ensuring licence holders engage in the various departments of banking business.

Mr Asiedu-Mante made this known at the launch of the Golden Jubilee celebrations of the Ghana Commercial Bank (GCB) in Accra yesterday.

“In this regard, you will need to continue to develop innovative but cost-effective banking products and services to maintain and attract more customers,” he emphasised.

He used the occasion to urge management of the GCB to review its strategies to enable the bank sustain its leadership role in the banking sector of the economy.

The Minister of Finance, Mr Yaw Osafo-Maafo, in his speech commended the management of the bank for its decision to issue Letters of Credit to finance crude oil in the wake of global economic difficulties, describing it as a “national service and prudent decision”.

He said the proposed Banking Bill is currently being reviewed by Cabinet and was optimistic that the bill will be passed into law when Parliament resumes sitting. Mr Osafo-Maafo called for small banks to merge to ensure that they meet the new capital adequacy requirements when the new bill is passed into law.

On the extension of the National Reconstruction Levy for another three years as announced in the 2003 budget statement, the Finance Minister called on the banks to accept this levy as a national responsibility.

Later in an interview, in a reaction to the new Consumer Price Index (CPI) which is reported to be at 29 per cent by the Statistical Service, Mr Osafo-Maafo said due to petroleum price increase, there has been economic turbulence, which has also led to price fluctuations.

“Therefore, for one to have used a particular period to measure inflation could certainly lead to distortions”, he said, and stressed that his ministry is still waiting for analysis from the Bank of Ghana on inflation rate in the country.

Mr Osafo-Maafo commended the GCB for its leadership role in the banking sector and called on management to set a good example of discipline for smaller banks to emulate.

The Board Chairman of the Bank, Mr K.G. Osei-Bonsu, said the bank will continue to offer quality service and maintain its leadership role by providing higher professional standards.