BOG sets conditions for meeting new capital level

Bank of Ghana has outlined conditions for meeting the new capital level of GH?400 million. According to a public notice by the Central Bank and signed by its secretary, Caroline Otoo , banks must recapitalize through fresh capital injection , Income surplus among others.   

It however maintained that banks are not suppose to capitalize revaluation reserves,  reserves  on financial instruments  through other  comprehensive   income, statutory  reserves, credit risk reserves and unaudited profits.

The Bank of Ghana  also adds that all exiting banks must maintain  a minimum unimpaired paid up capital  as per section 28(1) and (3) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930)

Read the full Bank of Ghana notice below:

In accordance with Section 28(1) of the Banks and Specialised Deposit – Taking Institutions Act, 2016 (Act 930), the Bank of Ghana announces for the information of Banks and the general public that it has revised upward the minimum paid up capital for existing banks and new entrants to GH ? 400,000,000.00 (Four Hundred Million Ghana Cedis) with effect from 4^th September, 2017 under the following conditions;

1.     Banks are required to meet the minimum capital through

A)    Fresh capital injection.

B)    Capitalisation of income surplus.

C)   A combination of fresh capital injection and capitalization of income surplus.

All banks and prospective applicants for banking licence should take note and be guided accordingly.

CAROLINE OTOO (MRS)

THE SECRETARY

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