BoG must raise minimum capital requirement for banks – Finance Expert

Haruna Alhassan, a finance expert from the Centre for Social Justice (CSJ), has recommended that the next government increase the minimum capital requirement for banks to strengthen Ghana's financial sector.

Speaking at the 13th Leadership Dialogue Series, Alhassan highlighted that the debt exchange and depreciating cedi have eroded banks' capital, hindering their ability to finance significant projects. He noted that the current GH¢400 million minimum capital, once equivalent to $100 million, is now less than $40 million.

Alhassan also urged the Bank of Ghana to tailor capital requirements and restrict foreign exchange reserves to essential imports to combat the cedi's rapid depreciation.