{"id":315745,"date":"2017-05-02T06:00:45","date_gmt":"2017-05-02T06:00:45","guid":{"rendered":"http:\/\/citifmonline.com\/?p=315745"},"modified":"2017-05-02T06:00:45","modified_gmt":"2017-05-02T06:00:45","slug":"banks-to-merge-over-projected-gh%c2%a2260m-capital-review-zenith-bank-md","status":"publish","type":"post","link":"https:\/\/citifmonline.com\/2017\/05\/banks-to-merge-over-projected-gh%c2%a2260m-capital-review-zenith-bank-md\/","title":{"rendered":"Banks to merge over projected GH\u00a2260m capital review \u2013 Zenith Bank MD"},"content":{"rendered":"<p>The Bank of Ghana\u2019s decision to peg the new minimum capital requirement for commercial banks at an estimated 260 million cedis should culminate in mergers and deepen the financial sector.<\/p>\n<p>[contextly_sidebar id=&#8221;upSRF0AU0MeKLOOuF9EABbv7VFiLDFML&#8221;]This is the position of the Managing Director of Zenith Bank, Henry Oroh.<\/p>\n<p>He explains to <strong>Citi Business News<\/strong> banks should also be able to undertake huge capital transactions with the increase in minimum capital.<\/p>\n<p>\u201cThe regulator has put forward about 260 million cedis. I think the minimum capital resetting was done deliberately by the government and the central bank to create bigger banks in the economy. We have a lot of banks that have very little capital and when your capital is very little, there is very little that you can do and when there are shocks, you\u2019ll have some problems,\u201d Mr. Oroh told <strong>Citi Business News<\/strong>.<\/p>\n<p>Already, some Managing Directors of banks are upbeat about the increase in the minimum capital requirement.<\/p>\n<p>Currently, banks are <span style=\"color: #666699;\"><strong><a style=\"color: #666699;\" href=\"http:\/\/citibusinessnews.com\/index.php\/2017\/04\/25\/bog-to-come-out-with-report-on-banks-recapitalization-dr-addison\/\" target=\"_blank\">operating with a minimum capital requirement of 120 million cedis<\/a><\/strong><\/span>.<\/p>\n<p>Some industry watchers believe the current figure has partly contributed to the over thirty-three (33) banks despite Ghana\u2019s relatively small population size.<\/p>\n<p>Mr. Oroh is however optimistic that bigger banks would also boost economic growth.<\/p>\n<p>\u201cRaising the capital up by the central bank is to compel banks to come together in a way to achieve bigger banks\u2026When you look at the size of Ghana\u2019s economy with over thirty-three banks, we are over banked if you ask me, compared to bigger economies like Nigeria and South Africa which have much less number of banks.\u201d<\/p>\n<p><strong>Banks submit documents for assessment<\/strong><\/p>\n<p>The Governor of the Bank of Ghana, Dr. Ernest Addison, last week told the Head of Business Desk at Citi FM, Vivian Kai Lokko in Washington that banks have submitted their reports for assessment.<\/p>\n<p>According to him, the reports should help in determining the minimum capital requirement for the banks.<\/p>\n<p>\u201cThe 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,\u201d he hinted.<\/p>\n<p><strong>Banking Consultant urges economic capital requirement<\/strong><\/p>\n<p>In light of discussions in reviewing the minimum capital requirement of banks, Banking Consultant, Nana Otuo Acheampong has impressed on the Bank of Ghana to <span style=\"color: #666699;\"><strong><a style=\"color: #666699;\" href=\"http:\/\/citibusinessnews.com\/index.php\/2016\/08\/15\/bog-must-consider-economic-capital-requirement-for-banks-nana-otuo\/\" target=\"_blank\">consider an economic capital requirement for universal commercial banks <\/a><\/strong><\/span>in Ghana rather than the regulatory minimum capital requirement.<\/p>\n<p>The economic capital requirement, according to Nana Otuo Acheampong, will allow the banks the choice to either remain a small bank or grow to become a bigger bank which allows them opportunity to participate in multimillion dollar transactions.<\/p>\n<p><strong>Capital market to grow with new minimum capital requirement<\/strong><\/p>\n<p>Meanwhile some analysts are anticipating growth in the capital market as banks which would opt out of mergers would be compelled to resort to the market to meet the revised regulatory capital requirement.<\/p>\n<p>&#8211;<\/p>\n<p>By: Pius Amihere Eduku\/citibusinessnews.com\/Ghana<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Bank of Ghana\u2019s decision to peg the new minimum capital requirement for commercial banks at an estimated 260 million cedis should culminate in mergers and deepen the financial sector. [contextly_sidebar id=&#8221;upSRF0AU0MeKLOOuF9EABbv7VFiLDFML&#8221;]This is the position of the Managing Director of Zenith Bank, Henry Oroh. He explains to Citi Business News banks should also be able [&hellip;]<\/p>\n","protected":false},"author":14,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[121,32,171,11],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Banks to merge over projected GH\u00a2260m capital review \u2013 Zenith Bank MD - Citi 97.3 FM - Relevant Radio. Always<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/citifmonline.com\/2017\/05\/banks-to-merge-over-projected-gh\u00a2260m-capital-review-zenith-bank-md\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Banks to merge over projected GH\u00a2260m capital review \u2013 Zenith Bank MD - Citi 97.3 FM - Relevant Radio. Always\" \/>\n<meta property=\"og:description\" content=\"The Bank of Ghana\u2019s decision to peg the new minimum capital requirement for commercial banks at an estimated 260 million cedis should culminate in mergers and deepen the financial sector. [contextly_sidebar id=&#8221;upSRF0AU0MeKLOOuF9EABbv7VFiLDFML&#8221;]This is the position of the Managing Director of Zenith Bank, Henry Oroh. 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