The BEIGE Bank (TBB) says it is on course to meet the Bank of Ghanaâ€™s (BoG) GHÂ¢400 million minimum capital requirement for universal banks by the end of December 2018.
Chief Executive Officer of BEIGE, Mike Nyinaku, said, â€œwe have a gap of less than GHÂ¢100 million of the expected stated capital position required by the Central Bank and we will definitely meet this before the year ends.
â€œIt has been a difficult year for indigenous banks without a doubt and we know that anxiety amongst customers has led to some of them re-directing their businesses. Having said that, we are happy about the faith our customers have had in us.â€
The earlier this year announced an increase in the minimum capital requirement for commercial banks in the country from the current GHÂ¢120 million to GHÂ¢400 million by December 2018.
The BoG had maintained that this move is to ensure a robust financial system.
The Chief Executive Officer of BEIGE has meanwhile, revealed that BEIGE has received â€œexpressions of interests both for equity participation in our business as well as merger propositions. However, while we are favourably considering them all, our aim – at the end of it all – is to preserve the indigenous identity of BEIGE. â€œ
He added: â€œNow that this hurdle is almost out of the way, our focus will be to direct our attention to the sale and distribution of our specialised Pension and Health Insurance Products which have been designed purposely to serve the retail market. â€œ
Board Chairman The BEIGE Bank, Kofi Otutu Adu-Labi, said following the transition into universal banking, TBB is gradually implementing a three-year strategy aimed at restructuring its balance sheet to remain competitive whilst playing in its niche â€“ the SME Market.
â€œThis strategy is anchored on re-pricing our deposits and driving a lot of demand deposits to significantly reduce and align our cost of funds with the industry. The medium-term effect is that the bank is able to restructure itself in a much shorter time to allow for competitive operations by year-three.
â€œWe are confident that the bankâ€™s strong corporate governance systems and investments in safe assets will enable us to remain very competitive beyond our achievement of the BOGâ€™s minimum capital requirement.
Board Chairman of BEIGE, Prof Stephen Adei, said: â€œwhile confirming that BEIGE will deliver, we also encourage as many Ghanaians, as are able, to consider investing in some of the indigenous banks, so we build this country together.â€
BEIGE is a financial services provider with business interests in Banking, Pensions, Insurance and Investments.