BoG gives banks December 2018 deadline to meet new capital requirement

The Bank of Ghana (BoG) has served notice to banks all commercial banks that they have till the end of December 2018 to comply with to meet the new minimum capital requirement.

In a statement signed by Mrs. Caroline Otoo the Secretary, said, banks are required to meet the new capital through fresh capital injection, capitalization of income surplus or a combination of the two.

The statement further indicated that the banks will not be allowed to capitalize revaluation reserves, reserves on financial instruments through other comprehensive income, statutory reserves , credit risk reserve and unaudited profit.

The central bank has announced that in accordance with section 28 (1) of the Banks and Specialized Deposit Taking Institutions Act 2016 Act (930) it has revised upwards the minimum paid up capital for existing banks and new entrants to 400 million cedis from the 120 million cedis.