potential mergers<\/strong><\/span>\u00a0<\/a>which may reduce the number of banks by at least five.<\/p>\n\u201cI am not expecting more than five banks consolidating because considering the prevailing conditions there are some ten banks whose preparation are somehow out of the public domain. With this, you\u2019re looking at such banks consolidating and I do not foresee more than ten banks in this category,\u201d Mr. Akrong asserted.<\/p>\n
An assessment of the Ghana Stock Exchange has shown that in 2017, about 90 percent of banks listed on the Ghana Stock Exchange performed well on the bourse.<\/p>\n
Some analysts say they expect such performances to continue following the banks\u2019 ability to raise additional capital from investors and also meet the new capital set by the central bank.<\/p>\n
But reacting to how well placed such banks that are listed on the Ghana Stock Exchange are in meeting the new capital requirement, an Investment Banker, Mahama Iddrisu rather alluded to a sustained positive growth at least well into the second quarter of 2018.<\/p>\n
\u201cWe should hope that this year we spur the company\u2019s on to make better profits in the first and second quarters and then when they make their rights issues, existing shareholders and even outside investors could see there\u2019s some value on investments in such banks and they can invest,\u201d Mr. Iddrisu explained.<\/p>\n
Meanwhile Credit Consultant, Emmanuel Akrong attributed the strong performances of the listed banks\u00a0 more to the prevailing economic conditions which in his view, supported the banking sector\u2019s growth.<\/p>\n
\u201cWith the issuance of the energy bond, there is some expectation in the market that those who are exposed are going to be paid. Also looking at the GDP performance of the economy, debt to GDP ratio and all other performance on the stock market, they show that the banks\u2019 performances should be crystallised. As to whether it is because of the new capital requirement people are getting capital, I do not have that news yet,\u201d<\/p>\n
For now, commercial banks will have to take their positions in order not to lose their licenses following inability to meet the new directive.<\/p>\n
–<\/p>\n
By: Pius Amihere Eduku\/citibusinessnews.com\/Ghana<\/p>\n","protected":false},"excerpt":{"rendered":"
Commercial banks are intensifying efforts to meet the new minimum capital requirement by December this year. Banking analysts also tell Citi Business News the move is likely to yield in some mergers by the end of the scheduled date. They however admit that while it has been easy for some banks, it appears others will […]<\/p>\n","protected":false},"author":14,"featured_media":378185,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[121,32,171,11],"tags":[1144,10673,15383],"yoast_head":"\n
Banks pursue investments for GH\u00a2400m minimum capital - Citi 97.3 FM - Relevant Radio. Always<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n