ABN - The central bank of Ghana has tripled the minimum capital required for banks to 400 million cedis (US$90.2 million), in an attempt to restore financial stability in the West African nation.
The new capital requirement is up from the previous figure of 120 million cedis, and will take effect from September 11 with lenders having up until the end of 2018 to meet them.
“With immediate effect, the Bank of Ghana has set out a new minimum capital requirement of 400 million cedis for banks as part of a holistic financial sector reform,” said Bernard Otabil, director of communications at the Bank of Ghana.
In recent years, Ghana has been marred by high public debt and budget deficits which led to the country signing a $918 million loan package with the IMF in 2015.
However, since being elected at the end of 2016, Nana Akufo-Addo’s new government has followed a policy of seeking financial and fiscal stability, signified by the latest reform within the banking sector.