Banks applaud temporary ban on licensing new banks

Banks applaud temporary ban on licensing new banks

Some Commercial Banks in Ghana (BoG) have praised the Central Bank’s decision to place a temporary ban on the licensing of new banks this year.

The commercial banks say the move will sanitize the industry even as they prepare to meet the new minimum capital requirement set by the BoG.

“That might be the regulator’s decision but that notwithstanding, I think we have had flood of banks in the country now. I believe what BoG wants to do is to ensure that we have quality financial institutions who will do what they said they will do but not just bringing banks onboard” Head of Retail Banking at FBN Bank, William Amon Neequaye said.

The BoG last year announced that it will not license new banks in 2018 to allow the regulator sanitize the banking system to ensure efficiency and also create space to strictly implement the new capital requirement of 400 million cedis.

Currently, there are about 35 banks in the country.

But Mr. Amon Neequaye speaking said the BoG must ensure the banking industry is strengthened.

“The banks that are coming onboard should also have the financial muscle to support the development of the country. So the regulator deciding not to bring more banks onboard I don’t think will be a final decision. I believe after the bank has done all that it needs to purge the system, they will definitely open the gates again” he stated.

Earlier, Banking Consultant Nana Otuo-Acheampong was of the view Ghana’s Banking sector may experience some stability due to the decision of the BoG to ban the licensing of new banks in 2018.

Mr. Neequaye spoke to Citi Business News when the bank held its final draw for its save and win promotion at its headquarters in Accra yesterday.

Source: Citi Business News

Leave a Reply

Recommended
The General Agriculture Workers Union (GAWU) has urged the Government…