Featured Product

    BOG Publishes Update on Status of Banking Sector Reforms in Ghana

    January 04, 2019

    BOG published an update on the status of banking sector reforms in Ghana. Following the recapitalization exercise that ended on December 31, 2018, there are now twenty three universal banks operating in Ghana.

    Ghana is undergoing strengthening of the regulatory and supervisory framework and the just-ended recapitalization exercise has re-positioned the banking sector as better capitalized, liquid, stronger, and more resilient. Sixteen banks (mentioned in the update) have met the new minimum paid-up capital requirement of GHC 400 million mainly retained income and fresh capital injection. Bank of Ghana approved a request for a voluntary winding up of the operations of Bank of Baroda (Ghana) Limited, effective from December 31, 2018. Bank of Baroda's winding up is the result of the Government of India's decision to rationalize the overseas operations of branches/subsidiaries of Indian public sector banks.

    Pursuant to Section 123 of the Banks and Specialized-Deposit-Taking Institutions Act, 2016, BOG has revoked the banking licenses of Premium Bank Limited and Heritage Bank Limited. Premium bank had continuously breached the capital adequacy ratio (CAR) requirement since December 20178. Efforts to correct the capital inadequacy did not work and the bank reported a CAR of negative 125.26% with a capital deficit of GHC 528.33 million, implying that the bank is insolvent. Investigation revealed that the bank obtained its banking license through the use of suspicious and non-existent capital. Furthermore, the prudential returns submitted to the Bank of Ghana wee inaccurate. In addition, Heritage Bank Limited lost its license because its capital appears to have come from suspicious sources and it failed to meet the GHC 400 million capital required as of December 31, 2018, among other issues. 

     

    Related Links

    Keywords: Middle East and Africa, Ghana, Banking, Capital Adequacy, Recapitalization Exercise, Bank Licenses, Banking Reforms, BOG

    Related Articles
    News

    ECA Recommends Actions to Enhance Resolution Planning for Banks

    EC published, in the Official Journal of the European Union, a notification that the European Court of Auditors (ECA) has published a special report on resolution planning in the Single Resolution Mechanism.

    January 20, 2021 WebPage Regulatory News
    News

    BoE Publishes Key Elements of the 2021 Stress Testing for Banks in UK

    BoE published a scenario against which it will be stress testing banks in 2021, in addition to setting out the key elements of the 2021 stress test, guidance on the 2021 stress test, and the variable paths for the 2021 stress test.

    January 20, 2021 WebPage Regulatory News
    News

    PRA Proposes Rules on Identity Verification of Depositor Protection

    PRA published a consultation paper (CP3/21) proposes rules regarding the timing of identity verification required for eligibility of depositor protection under the Financial Services Compensation Scheme (FSCS).

    January 20, 2021 WebPage Regulatory News
    News

    FSB Publishes Work Program for 2021

    FSB published the work program for 2021, which reflects a strategic shift in priorities in the COVID-19 environment.

    January 20, 2021 WebPage Regulatory News
    News

    FED Revises Capital Planning and Stress Testing Requirements for Banks

    FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.

    January 19, 2021 WebPage Regulatory News
    News

    ECB Releases Results of Bank Lending Survey for Fourth Quarter of 2020

    ECB published results of the quarterly lending survey conducted on 143 banks in the euro area.

    January 19, 2021 WebPage Regulatory News
    News

    Bundesbank Publishes Derivation Rules for Reporting by Banks

    Bundesbank published Version 5.0 of the derivation rules for completeness check at the form level, with respect to the data quality of the European harmonized reporting system.

    January 19, 2021 WebPage Regulatory News
    News

    ESAs Publish Reporting Templates for Financial Conglomerates

    ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.

    January 18, 2021 WebPage Regulatory News
    News

    EBA Publishes Report on Asset Encumbrance of Banks in EU

    EBA published the annual report on asset encumbrance of banks in EU.

    January 18, 2021 WebPage Regulatory News
    News

    FCA Proposes Guidance on Mortgage and Consumer Credit Repossessions

    FCA proposed two sets of guidance on the approaches to mortgage repossessions and consumer credit repossessions, with comment period ending on January 18, 2021.

    January 18, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6478