A Financial Analyst, Dr. Ebenezer Ashley, has lauded government’s move to offer a GH₵2 billion bailout package to some local banks that are in good standing but unable to meet the Bank of Ghana (BoG) deadline on recapitalization which expired December 31.
In an interview with GBC, he said it is economically prudent that such steps are taken to prevent losses as well as strengthen the financial sector.
According to him, the move was seen as the only glimpse of hope for the six banks, who risk having their licenses withdrawn or at best downgraded to savings and loans companies for failing to successfully recapitalise.
Also Stanbic Bank Ghana Limited has absorbed customers of Indian-state lender, Bank of Baroda under an arrangement that comes at no cost to Stanbic.
Dr. Ashley indicated that the move by the central bank is a step in the right direction in creating a healthy banking sector in Ghana.
He was of the view that its impact whether positive or negative would be dependent on proximity of the branches of the Bank.
The move will allow the Indian based Bank to cease operations in Ghana after it voluntarily in August 2018 requested to be opted for insolvency in order to avoid raising the four hundred million minimum requirement.
Bank of Baroda which started operations in 2008 was servicing mainly the Indian Community in Ghana and helping transfers of funds to and from India and was also considered one of the profitable banks in the Country.
Also the Governor of the Bank of Ghana will today or later this week announce the full list of universal banks who have met or are in the process of meeting the four hundred million minimum capital requirement .
Story by: Mabel Adorkor Annang
