Following the Bank of Ghana’s decision to increase the minimum capital requirement of banks to 120 million Ghana Cedis, the banking industry could witness some mergers and acquisition this time around.

First Deputy Governor, Millison Narh announced yesterday that new entrants into the banking industry will be required to have a stated capital of 120 million Ghana Cedis.

However, the Central Bank is silent on the definite time for introducing the new requirement though XYZ BUSINESS learnt the increment will be gradual.

No acquisition was witnessed when the Central Bank of Ghana shored up the capital of banks to 60 million Ghana Cedis in 2009.

But speaking to XYZ BUSINESS, Head of Osei Tutu the Second Center for Executive Education and Research, Nana Otuo Acheampong said the new guidelines for mergers and acquisition will provide a leeway for the players to merge.

“We could expect but it is up to the players themselves as to whether they are ready for mergers and acquisitions. At the same time the Bank of Ghana is coming out with guidelines on mergers and acquisitions for banks, financial institutions probably it will make it easier for existing banks to merge.”

He added that the new requirement will help institutions such as COCOBOD to raise capital here instead of going abroad to do so.

The new requirement will see rural banks having a minimum capital of 300,000 Ghana Cedis, a 100 percent increment. Non-bank financial institutions would also shore up their capital from 7 million Ghana Cedis to 15 million Ghana Cedis.