UBA Ghana begins rights issue to meet BoG capital demands

The United Bank for Africa, Ghana, is soon to begin a rights issue to meet the new capital requirement by the central bank.

The Bank of Ghana last year introduced new requirements for obtaining universal banking license by increasing the minimum capital of banks from $7 million to $60 million.

While banks with foreign interest have up to this year ending to meet the requirement, Ghanaian owned banks with local majority share ownership will have to capitalize up to at least 25 million dollars by 2010 and 60 million dollars by 2012.

The right issues will see the Group supporting its local subsidiary it with part of required capital, whiles the rest is raised by its local shareholders.

The Managing Director of UBA Gabriel Edgal told Joy Business this will ensure the bank is adequately capitalized ahead of the December deadline.