BoG reassures public of safe banking system

The Second Deputy Governor of Bank of Ghana (BoG), Elsie Awadzi has reassured stakeholders of a safe banking system, as it thrives to ensure sanity in the sector.

Speaking at the Graphic Business/ Stanbic Bank Breakfast Meeting, dubbed; liquidity and solvency management-boosting the health of banking in Ghana, Awadzi said, “the banking sector is broadly safe and so we expect the public to be confident in the banking system.”

She emphasised BoG expects that all banks will comply with the minimum capital requirement by the end of this year.

“We are monitoring all the banks and all their plans for raising the additional capital that is needed,” she assured.

In order for banks to position themselves appropriately to meet the December 2018 deadline of the GHS 400 million minimum capital requirement, the Central Bank advised the suspension of the payment of dividends to their shareholders.

Awadzi reiterated that the central bank is taking additional measures, as it comes up with new regulations and directives that will make banks better governed, as well as ensure that they have proper risk management systems in place.

The central bank plans to operationalise, by early next year, the Bank of Ghana Deposit Protection Scheme established under Ghana Deposit Protection Act 216, (Act 931 as amended) to provide further protection for depositors’ fund.

This will promote high standards in the industry.

Also, guidelines for a strict, fit and proper test for bank directors, shareholders and key management personnel will soon be rolled out.

It is expected that, with the implementation of Basel II and III, the capital structure of banks are going to be strong and more resilient.

The central bank further expects that, all banks comply with the requirement to publish financial statements promptly.