Energy Bank, one of the Universal Banks in Ghana, has begun a process of raising a sum of GHS350 million from the Ghana Stock Exchange as it prepares to meet the Bank of Ghana’s minimum capital requirement.
“We are liquid but our capital base is not adequate so we are going public by June this year to raise more funds and we are bringing on board additional investors to strengthen our financial position,” a source at the Bank revealed
The bank is hoping to meet the new minimum capital requirement before the end of the year.
Energy Bank Ghana Limited was incorporated in 2009 as a private limited liability company. It began full scale banking operations on February 22, 2011 after acquiring a class 1 universal banking license.
A financial and economic expert, Yaw Ohemeng Kyei has revealed that any bank that would not be able to meet the required GHS400 million minimum capital has the option of either merging with another or forfeiting its universal banking license and becoming a Savings and Loans Company.
“Bank of Ghana is currently enforcing the all the regulations and institutions and individuals that will flout them will not be spared,” he said.
Meanwhile the Bank of Ghana says it is monitoring the operations of all the operating banks to weigh their capacity before the December 31 deadline.
“So far we cannot tell you the number of banks that have met the minimum capital requirement. We are not in a position to tell you that this bank or that bank has attained its minimum capital. We are monitoring the operations of the banks and we shall announce them at the right time,” a source at the bank informed.
Currently, there are 34 universal Banks operating in Ghana. Out of this, six are in a distressed position and are on the brink of folding up.
By Adu Koranteng