Bring merger plans: BoG to struggling banks

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Banks that cannot meet the 31 December 2018 deadline for the GHS400 million recapitalisation should present their mergers, the Bank of Ghana has said.

The central bank believes such a move will help consolidate their operations with other entities after the deadline.

Bank of Ghana Governor told international TV network, CNBC: “We have put on the table that the banks that are not able to raise that capital should come together in the form of mergers and we are ready to accept an indication of how you intend to put yourself together to meet that minimum capital requirement”.

The idea, Dr Addison said, “is not to say that these banks should completely merge by the end of 31 December. I know there are operational capital difficulties in doing that, integrating the IT system, staff, and all of those things. Those are operational issues that can be dealt with in the longer time frame”.

The Governor said it was important the banks showed commitment to merge since there will be no extension of the deadline.

“We just want the banks to come up with the indication that, this is what we are planning to do. These are the banks that are planning to come together and then the rest will be implemented over a longer period. So implementation is not necessarily for December 31st, but you need to make that conscious decision,” Dr Addison said.

Source: Ghana/ClassFMonline.com/91.3FM

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