BoG to come out with report on banks recapitalization- Dr. Addison

The Bank of Ghana(BoG) has hinted that it will soon announce a decision on the recapitalization of banks in the country.

The central bank announced measures to increase the minimum capital requirement of banks in the country this year from the current 120 million cedis.

Speaking to Head of Citi FM's Business Desk, Vivian Kai Lokko at the ongoing Spring Meetings in Washington D.C, the Governor of the Bank of Ghana, Dr. Ernest Addison disclosed that the banks have submitted their reports for assessment.

He stated that banks in the country have communicated their preparedness to bank in a report which is yet to examined by the regulator.

“The Bank of Ghana has written to them to submit recapitalization plans. We are waiting to look at those recapitalization plans. It has to be credible. We are hoping that in the next few weeks on the basis of their report that they submit, some decisions would have to be taken,” he hinted.

He explained that recapitalization exercise is important due to the asset quality of commercial banks in the country, to equip them.

Stressing on the Asset Quality Review of banks, Dr. Adisson maintained that the exercise is necessary to stabilize the activities of the banking sector due to loan portfolios of banks.

“I'm sure you are aware of the asset quality review. Due to some of the findings of the Asset quality Review the banks were asked to make additional provisions for some of their loans and on the basis of that some banks need to recapitalize,” he said.

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By: Lawrence Segbefia/citibusinessnews.com/Ghana