GN Bank confident of meeting new BoG capital requirement by end of 2018

Chief Executive Officer of GN Bank, Issah Adam has indicated the bank's preparedness to meet the new GHC400 million capital requirement set by the Bank of Ghana.

Issah Adam is confident that with the arrangements currently in place, GN Bank should raise the needed capital by end of 2018.

Indigenous banks are in for a tough time as some

Read full articleare racing against time to meet the central bank’s GH¢400 million minimum capital requirement.

Outlining the measures the Bank has put in place, Issah Adam expressed confidence in their ability to raise the minimum capital well ahead of time.

"In December 2017, we presented our capital plan as demanded by the Bank of Ghana and in the capital plan we indicated how the money was going to be raised. It is a rights issue and with that existing shareholders are going to exercise their rights by bringing in the money in their current shareholding structure that we have and as I speak to you, the capital plan indicated that they were going to bring in some money in quarter1, quarter 2 and quarter 3. The plan is that by the end of the 3rd quarter, they would have brought in GHC 280 million to take our minimum capital to GHC400 million set by the Bank of Ghana" Issah Adam stressed.

"The shareholders, whatever they promised to bring in quarter one has already been brought. By February, they had brought that money so our capital has gone up by GHC60 million by the end of quarter 1 and they are determined to bring in what they have planned for quarter 2 and quarter 3. So before the end of the year, I'm very convinced that GN Bank will meet the capital requirements" he added.

Earlier this week, some Managing Directors and Chief Executive Officers of local banks in the country met President Nana Addo Dankwa Akufo Addo in their bid to push to push the deadline for recapitalisation for local banks from December 2018 to 2022.

In a letter to the President and signed by all the Managing Directors and Chief Executive Officers of the local banks, the local banks said they were in a better position to recapitalise up to GH¢170 million by the end of 2018, GH¢220 million by the end of 2019, GH¢280 million in 2020, GH¢340 million in 2021 and GH¢400 million in 2022.