Former Finance Minister Seth Terkper has advocated the creation of an additional tier banking reserved for indigenous banks to occupy the existing gap between the minimum capital requirement of universal banks and savings and loans companies.
The Bank of Ghana in 2017 increased minimum capital requirement from GHS120 million and gave the banks a December 31, 2019 deadline to meet it amidst a raft of other banking reforms.
Currently, the minimum capital requirement for universal banks is pegged at GHS400 million while savings and loans companies are required to have at least GHS15 million by the regulator.
Speaking in an interaction with the press in Accra, the former Finance Minister Mr. Terkper argued that the increase in the minimum capital requirement leaves indigenous banks worse off.
“Other solutions have been proposed. I have also said that this concern that we are seen to be taking indigenous out because they are the least able to afford the GHS400 million minimum capital could be resolved through maybe another tier between savings and loans and universal banks.
The gap between the minimum capital requirement of savings and loans and banks is huge so maybe could have another tier where niche banks could operate,” he said.
According to the former Finance Minister, the managers of the economy would have to be more solution-oriented.