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Council Of State Advises Banks To Merge

The Council of State has advised indigenous banks which cannot meet the Bank of Ghana’s capital requirement to enter into mergers in order to compete favourably and ensure sanity in the banking sector.

This was after it met the Governor of the Bank of Ghana (BoG) to discuss topical issues in the banking sector.

A statement issued and signed Peace A.P. Okantey, acting Secretary to the Council, said the Council took the opportunity to discuss a petition submitted by indigenous banks to the President copied to the Council.

It said the Council of State was briefed on the position of the Bank of Ghana regarding challenges affecting the operations of indigenous banks and measures so far adopted.

After extensive deliberations and careful examination of available options, the Council urged the BoG to intensify its due diligence, monitoring and enforcement processes to safeguard the interest of depositors.

“While supporting measures so far taken by the Bank of Ghana to ensure prudence in the banking sector, the Council urges the bank to broaden its avenues for public engagement.

“Ultimately, depositors’ interests must be protected at all times and the public needs to be so assured to boost confidence in the banking sector.”

The directive by the Central Bank to all 32 banks operating in the country to raise their minimum capital to GH¢400 million from the recent GH¢120 million appears to be troubling them, as it continues to expose the skeletons in their cupboards.