Tag Archives: Bank of Ghana

Is Premium Bank Soon to be Consolidated?

premium bank

Even though Premium Bank was part of the List of the 31 Banks released by the Bank of Ghana in August. Business.com.gh can confirm things are not right in terms of capitalization. There is a possibility of its being consolidated with another Commercial Bank suffering. Which Bank? We are yet to know. Business.com.gh can say this because customers of Premium Bank ...

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BoG caps tenure of CEOs, directors of banks – New directive takes immediate effect

BOG new directive

The Bank of Ghana (BoG) has issued a directive to cap the tenure of the office of all managing directors or chief executive officers (MD/CEO) of regulated financial institutions at four years. However, this is renewable only for two additional terms of four years each. The new directive, which takes immediate effect, also restricts the tenure of office of non-executive ...

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Pass “Proper Test” before going Digital – BOG

MFI Digital Space

Microfinance companies interested when introducing digital products and services, including agency banking and mobile money, must first meet the central bank’s ‘fit and proper test’ including GH¢2million minimum capital. Head of Payment Systems at the central bank, Dr Settor Amediku, told players in the Microfinance space at the annual general meeting of the Ghana Association of Microfinance Companies (GAMC) that ...

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Directors from Capital & UT Bank Collapse would be punished – BOG

Capital bank

The Governor of the Central Bank has disclosed that staff of the Bank who were compromised in the supervision of the collapsed banks such as UT Bank and Capital Bank would face the music. Dr Ernest Addison said like other directors of the aforementioned banks, staff who played a role in the demise of the banks would not be spared. “Don’t be surprised if ...

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Bank of Ghana to be tough on Rural Bank Capital Requirement

Bank of Ghana

The Bank of Ghana in 2015 raised the minimum paid-up capital requirement of all rural and community banks in Ghana from GH¢300,000 to GH¢1million. All the 141 rural and community banks were expected to raise their paid-up capital to GH¢500,000 by December 2016 and GH¢1million by December 2017. As at June 2017, out of the 141 rural banks in Ghana ...

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Bayport Savings and Loans, CFC Savings and Loans merged

Bayport savings

Bayport Savings and Loans and CFC Savings and Loans have merged after receiving approval from the Bank of Ghana. The new entity, according to the management of the company is known as Bayport Savings and Loan PLC and will offer the full spectrum of products and services previously available from Bayport and CFC. Speaking to journalists after a short ceremony ...

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SMEs could be biggest losers in stated capital increment

Stated Capital

Although they are afraid to talk openly, officials of some SME-focused banks are restive about the GH¢400million stated capital increment for banks, saying it could hurt SMEs badly. “Banks like us that want to do SMEs will now be forced to raise capital to do big-ticket or forced to merge, and the whole philosophy of serving the lower-end of the ...

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Abiola Bawuah supports BoG Governor on banks downgrading

Abiola Bawuah

Managing Director of UBA Ghana, Abiola Bawuah, has endorsed the BoG Governor’s position that banks that cannot meet the GH¢400million minimum capital requirement should downgrade to savings and loans companies. “Nobody is preventing a bank from doing small ticket but if you want to do micro, you go to savings and loans. Beyond savings and loans too, we also have ...

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BoG sets compliance deadline for MicroFinance

Bank of Ghana

Microfinance institutions (MFIs) have up to the end of April 2018 to comply with new guidelines set by the central bank to streamline their operations, a report by the Finance Committee of Parliament has revealed. The rule requires MFIs, among others, to have a public governance policy that establishes a number of committees including a credit management committee and submit ...

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NPLs to affect recapitalisation—Experts

Bank of Ghana

Banks will struggle to recapitalise if government does not settle its indebtedness to commercial banks to reduce the existing non-performing loans (NPLs) in the sector, Dr. Richmond Atuahene, a corporate governance expert and lecturer at the Ghana Banking College has said. “Bank of Ghana is saying that, in computing impaired paid capital, the losses shall not be set-off against the ...

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