Business News of Tuesday, 17 April 2018

Source: thebftonline.com

African Investment Group President supports minimum capital deadline extension

Sam Ankrah Prez President, African Investment Group, Dr. Sam Ankrah

Extending the December 2018 minimum capital deadline for local banks will afford them more time to adjust to the new rules, whilst demonstrating that government is committed to strengthening the banking sector, President of the African Investment Group, Dr. Sam Ankrah, has said.

“In as much as I have been a fervent advocate for banks to be pushed to have the capacity to do big ticket transactions. I think any room to give time for the banks to prepare well for this exercise should be welcomed.

Furthermore, it affords the banks the opportunity to readjust in a systematic manner to the new rules, giving them sufficient time to prop up their balance sheets,” he told the B&FT in an interview.

He comments come in the wake of efforts by local banks to get the December 2018 deadline for them to meet the new GH¢400 million minimum capital extended for them.

President Nana Akufo-Addo is said to have ordered the establishment of a committee to look into the concerns raised by local banks.

A source told the B&FT, after a meeting between the local banks and the presidency, that the committee is to come up with a report by May 26, 2018, which will provide a roadmap for strengthening the banking sector, especially local banks.

“The way forward is likely to include more time for local banks. From everybody’s body-language, local banks will be given some more time to meet the deadline,” the source said.

Going forward, Dr. Ankrah said a delicate balance need be struck between ensuring that the financial sector is not distabilised and banks becoming stronger.