Business News of Tuesday, 28 November 2023
Source: www.ghanaweb.live
2023-11-28There are no banks currently on liquidity support – BoG
Dr. Ernest Addison is Governor of Bank of Ghana
The Governor of the Bank of Ghana (BoG), Dr Ernest Addison, has said that even though a liquidity intervention had been created, there are no banks currently on liquidity support.
The banks, according to the Governor, have submitted their recapitalization plans, which the central bank has found to be satisfactory and, hence do not need liquidity support.
He disclosed
Read full article.this during the 115th Monetary Policy Committee (MPC) press conference on November 27, 2023.
“There are no banks on liquidity support however, you know that we have some legacy institutions in the non-bank sector that are in a sense not able to meet depositor payment, these are legacy problems so as things normalize the rationale for these interventions may not be as strong as they were when you were in the middle of the crisis."
The Governor added that as the economy stabilizes, the BoG may have to close the window for the support.
“This is why the Fund acknowledges that it was a good intervention but as the economy normalizes, the exchange rate stabilizes, and the markets function properly there will be probably a need for us to get out of that operation,” he said.
The bank, however, expects all banks to have fully recapitalized by the next two years.
“All 23 banks have submitted their recapitalization plans, the Banking Supervision Department has reviewed all of these and we find them credible, and we are quite hopeful that within the next two years, most of the banks would have fully recapitalized and be able to meet the capital adequacy threshold without relief. They are meeting those thresholds with the regulatory reliefs but in the next two years, they will be able to make the capital adequacy ratio with any reliefs,” the Governor said.
SSD/OGB
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