The BEIGE Bank has announced that it will be able to meet the new minimum capital requirement for banks before the December 2018 deadline.
The bank, in a statement to Citi Business News said that its current financial position shows that it is about 100 million cedis shy of the 400 million cedis minimum capital.
The CEO of BEIGE, Mike Nyinaku however says the bank is assessing options including the injection of capital by investors in the form of equity or merging with another institution.
“We have a gap of less than GHc100million of the expected stated capital position required by the Central Bank and we will definitely meet this before the year ends,” he said.
Mike Nyinaku added, “Due to the appeal of our brand, the size and variety of services on our Group’s Platform, we have received expressions of interests both for equity participation in our business as well as merger propositions. However, while we are favourably considering them all, our aim – at the end of it all – is to preserve the indigenous identity of BEIGE.”
BoG increases banks’ minimum capital by over 230%
The Bank of Ghana in September 2017 increased the minimum capital for banks from 120 million cedis to 400 million cedis.
The banks have up till December 2018 to meet the new minimum capital.
Indigenous banks seek extension
Indigenous banks have petitioned the President, Nana Akufo Addo for an extension.
The indigenous banks are appealing that the December 2018 deadline be extended to 2022.
According to them, their financial strength do not match that of the foreign banks operating in Ghana.
The President has since tasked a committee to look into the requests by the indigenous banks and submit a report to determine the next line of action to be taken.
But the Bank of Ghana has on several platforms, downplayed any possibility of an extension of the December 2018 deadline.
Meanwhile, the Board Chairman of the BEIGE Bank, Kofi Otutu Adu-Labi, is also confident that the bank’s three year strategy will help it meet the minimum capital requirement.
“This strategy is anchored on re-pricing our deposits and driving a lot of demand deposits to significantly reduce and align our cost of funds with the industry. The medium term effect is that the bank is able to restructure itself in a much shorter time to allow for competitive operations by year three (3),” he said.