• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business Banking & Finance

Bank of Ghana Tightens Recapitalization Requirements

1 year ago
in Banking & Finance, Business, Features, highlights, Home, home-news, latest News
1 min read
0 0
0
160
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Bank of Ghana Tightens Recapitalization Requirements

The Bank of Ghana (BoG) is stepping up its enforcement of recapitalization mandate, with a suite of escalating punitive and corrective measures aimed at ensuring banks comply with minimum capital requirements.

This initiative is crucial for maintaining a positive Capital Adequacy Ratio (CAR) and closing one-third of the capital gaps by the end of March 2024 and 2025.

Phasing Out Regulatory Forbearance

According to the International Monetary Fund (IMF), the BoG plans to phase out the temporary regulatory forbearance measures, introduced in response to the Domestic Debt Exchange (DDE), by 2027.

The central bank is committed to a stringent regulatory framework for Non-Performing Loans (NPLs), ensuring they are properly reported and provisioned, thus bolstering the sector’s financial health and transparency.

Government-Led Recapitalization Efforts

RelatedPosts

MTN Nigeria Now the Most Capitalized Stock in Nigeria

Nigerian Stock Market Creates Largest Pool of Billion-Dollar Stocks in 2025

OPEC+ Nears Decision Point on Next Oil Output Hike

Recapitalization efforts are already underway, with the government-funded Ghana Financial Sector Stability Fund (GFSF) beginning to inject marketable government bonds into state-owned banks. This initiative marks the first phase of a comprehensive strategy to stabilize and strengthen the banking sector.

The World Bank has approved funding for the second phase of the GFSF, which will target undercapitalized domestic banks. This funding is conditional on prior capital injections by shareholders, ensuring that these banks demonstrate a commitment to their own recapitalization before receiving additional support.

The World Bank is also working closely with the Ghanaian government to ensure that the GFSF adheres to best governance practices, enhancing transparency and accountability.

Addressing Legacy Issues and Sectoral Challenges

The Ghanaian government is also focused on resolving longstanding issues and new challenges within Special Depository Institutions (SDIs) and the asset management sector.

The IMF highlights the importance of the rural banking system in promoting financial inclusion, emphasizing the need to address the sector’s chronic undercapitalization. This includes tackling the DDE-related undercapitalization of the ARB Apex Bank, which plays a pivotal role in supporting rural banks.

To ensure the efficient use of government resources, financial assistance for SDIs will be contingent on rigorous regulatory assessments of their recapitalization plans and future viability. This approach aims to direct resources to institutions with sustainable business models and robust growth prospects.

Commitment to Financial Stability and Inclusion

The BoG’s stringent measures, coupled with the government’s resolve to address both legacy and emerging financial challenges, underscore a broader strategy to enhance the stability and resilience of Ghana’s financial sector.

By prioritizing bank recapitalization and enforcing strict regulatory frameworks, the authorities aim to foster a robust banking environment that underpins economic growth and financial inclusion.

Tags: Bank of GhanaBank of Ghana Tightens Recapitalization RequirementsRecapitalization Requirements

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

No Result
View All Result

Highlights

Europe’s Energy Future Hinges on Global Powers

US Companies Cut Investments in China to Record Lows, Here’s Why

How AI is Rewriting and Enhancing Water Risk Management

SheFarms Broiler Edition Kicks Off in Greater Accra

PharmAccess Ghana, Healthcare Federation of Ghana sign SafeCare License Agreement; to use Newest ISQua-Certified Version 5

Tanzania Sink Burkina Faso to Delight Home Crowd In TotalEnergies CHAN 2024 Opener

Trending

Features

MTN Nigeria Now the Most Capitalized Stock in Nigeria

August 3, 2025

MTN Nigeria Now the Most Capitalized Stock in Nigeria MTN Nigeria has surged to become the most...

Nigerian Stock Market Creates Largest Pool of Billion-Dollar Stocks in 2025

August 3, 2025

OPEC+ Nears Decision Point on Next Oil Output Hike

August 3, 2025

Europe’s Energy Future Hinges on Global Powers

August 3, 2025

US Companies Cut Investments in China to Record Lows, Here’s Why

August 3, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.