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General News of Thursday, 2 August 2018

Source: citibusinessnews.com

Government to support local banks meet recapitalisation

The Bank of Ghana(BoG) has hinted that the government will be provide financial support to other indigenous banks as needed, to help them meet the minimum capital requirement of GH¢400 million by 31st December 2018.

The government, however indicated that such support will be limited to indigenous banks that are solvent, well governed and managed, in full compliance with the Bank of Ghana’s regulatory requirements.

It also stressed that the aid will be given to banks who are able to demonstrate that they have been unable to access private sector solutions for recapitalization due to market conditions.

Additionally, the Central Bank said the government has committed to further explore policy interventions needed to make the entire financial system more robust, for the benefit of the Ghanaian economy.

The Bank of Ghana assured that it remains committed to supporting the orderly development of Ghana’s banking sector, including indigenous Ghanaian banks, while promoting a strong and resilient sector to drive Ghana’s economic growth.



BoG further guarantees it will take steps to ensure that all relevant parties whose actions contributed to the failure of the five banks are held accountable through administrative, civil, and criminal actions as appropriate. the Governor of the Bank of Ghana made these assertion after five local banks were collapsed to form the Consolidated Bank Limited, Ghana.