Home | Goldstreet Business
Friday, June 2, 2023
  • Home
  • General News
    • Extractives
    • Auto
  • Business
    • Banking and Finance
    • AgriBusiness
    • Insurance
    • Mining
    • Oil and Gas
    • Real Estate/Housing
  • News
    • Top Stories
    • Agriculture
    • Maritime/Aviation
    • Energy
    • Education
    • Construction
  • Technology
    • ICT
    • Telecom
  • World
    • Africa
    • International
  • Editorial/Features
  • GSB Data Services
No Result
View All Result
  • Home
  • General News
    • Extractives
    • Auto
  • Business
    • Banking and Finance
    • AgriBusiness
    • Insurance
    • Mining
    • Oil and Gas
    • Real Estate/Housing
  • News
    • Top Stories
    • Agriculture
    • Maritime/Aviation
    • Energy
    • Education
    • Construction
  • Technology
    • ICT
    • Telecom
  • World
    • Africa
    • International
  • Editorial/Features
  • GSB Data Services
No Result
View All Result
Gold Business Logo
No Result
View All Result

Fidelity Bank’s shareholders approve funds to meet BoG’s minimum capitalisation

December 5, 2018
in Uncategorized
0
Share on FacebookShare on Twitter

Fidelity Bank Ghana Limited has held an Extraordinary General Meeting (EGM) of shareholders on November 30 where shareholders passed a resolution to increase the banks stated capital to meet the Bank of Ghana’s minimum capitalisation deadline.

After the general meeting, board members led by Chairman; Edward Effah interacted with the media explaining there had to be an emergency meeting to raise the minimum stated capital as directed by the central bank whereas the EGM could have come off in April or May of 2019.

RELATED POSTS

Government expecting $1.2bn in IMF disbursement for 2023 –Dr Adam

Rationalising Decisions: The Psychology of Making Sense of the Nonsensical

Although 3 banks approached Fidelity for acquisition or merger talks, Mr. Effah declared they declined the offers because any merge had to be strategic and not just to meet a minimum capital requirement.

“When we acquired Procredit in 2014, the company had 24 branches as well as skills and systems which fitted our operations,” he said noting internal auditors have done their checks and presented the soundness of the bank’s position hence the application to the Bank of Ghana (BoG) for approval as a bank with enough capital to operate.

“We issued preference shares not diluted, deductible only to ordinary shares,” he stated.

Despite Fidelity shareholders passing a special resolution to meet the capitalisation requirements and the bank coming into more cash, Mr. Effah submitted the bank was in no hurry to enter new sectors.

“Fidelity didn’t scratch its head when the GHc400milion directive came because banks must be well capitalised to operate effectively, protect depositors’ funds as well as invest in the agriculture, real estate and transport sectors. We are also aware additional capital requirement directives will be given soon and unlike banks with little balance sheet who might struggle, we don’t have that problem,” he pointed out.

He said as a local bank, “Fidelity was founded by Ghanaians and run by Ghanaians although there are foreign investors who bring value and global networking opportunities, contact and relationships on board but their contribution is less than 40 percent.”

Ghana saw a turbulent period in its banking sector thanks to the power crisis branded ‘dumsor.’ Although the outages generated business for the Bulk Oil Distribution Companies (BDC) where oil importation boomed, because government owed the BDCs which had borrowed from the local banks, the level of Nonperforming Loan (NPL) ballooned. With the period also seeing high interest rates, high inflation coupled with the depreciation of the cedi against the dollar, the situation exacerbated.

As at December 31, industry NPLs had risen over 22% and when bank gave loans and couldn’t get them back, it meant their cash flow was little with liquidity dried-up.

The Bank of Ghana fearing a total collapse of the banking sector commissioned a look into the books of banks. That checking identified 9 distressed banks which were given guidelines to improve their standing.

Of the 9, 7 failed to balance their accounts which led GCB to take over Capital Bank and UT Bank.

A further 5 others were absorbed by a state creation, the Consolidated Bank, Ghana to safeguard the deposits of clients and to bring sanity to the system.

For Fidelity Bank however, Chairman Edward Effah submitted there weren’t any such monetary shortages as by the time the BoG made the GHc400m minimum capitalisation announcement, the bank already had GHc264 million, double that of the previous GHc120milliom minimum stated capital requirement.

In April, an emergency general meeting passed a resolution to move GHc20million surplus money to stated capital while fresh injections of capital from clients amounted to GHc70 million as at October 2018 bringing its stated capital to GHc354 million.

By the deadline of December 2018 for banks to have a minimum stated capital of GHc400 million, Fidelity Bank says it would have had GHc404 million thanks to the new resolution approving movement of GHc50 million to stated capital showing it was a resilient local bank clients can trust and for the regulators to hold up as a shining example.

While the collapsed banks were local banks, Fidelity stands out for being a local bank with strong liquidity position with its loans performing well, having risk assets on balance sheet and a rich capital adequacy ration.

The bank says it also fares well in Loan to Deposit Ratio against the top 10 banks in the country involving Zenith Bank, GCB, Stanchart, Ecobank, ADB, NIB, Stanbic Bank, Cal Bank, Barclays Bank and Unibank as at December 2017.

On quality of assets and earnings on investment, the bank says it invests in government securities and collects earning up-front and makes good returns on fees and commissions.

By: Michael Eli Dokosi/goldstreetbusiness.com

facebookShare on Facebook
TwitterTweet
ShareTweetShare

Related Posts

Government expecting $1.2bn in IMF disbursement for 2023 –Dr Adam

Government expecting $1.2bn in IMF disbursement for 2023 –Dr Adam

May 15, 2023
Rationalising Decisions: The Psychology of Making Sense of the Nonsensical

Rationalising Decisions: The Psychology of Making Sense of the Nonsensical

May 15, 2023

44% of Ghana’s workforce multidimensionally poor

May 9, 2023
Fitch Solutions forecasts 43% depreciation of cedi to dollar in 2022

Cedi to end 2023 at ¢12.40 to a dollar – Fitch Solutions

May 9, 2023
“How Did I Get Here” premieres on GHOne TV & DSTV Channel 361

“How Did I Get Here” premieres on GHOne TV & DSTV Channel 361

May 9, 2023
Next Post

MTN-Ghana supports Kente Festival with cash, products

FBNBANK gets $72.5million capital injection

Archives

<
May 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
▼
>
MonTueWedThuFriSatSun
1234567
891011121314
15161718192021
22232425262728
293031    
       
     12
3456789
10111213141516
17181920212223
24252627282930
       
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
  12345
6789101112
13141516171819
20212223242526
2728     
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
   1234
567891011
12131415161718
19202122232425
262728293031 
       
 123456
78910111213
14151617181920
21222324252627
282930    
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
   1234
567891011
12131415161718
19202122232425
2627282930  
       
1234567
891011121314
15161718192021
22232425262728
293031    
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
  12345
6789101112
13141516171819
20212223242526
27282930   
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
    123
45678910
11121314151617
18192021222324
252627282930 
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
 123456
78910111213
14151617181920
21222324252627
28      
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
1234567
891011121314
15161718192021
22232425262728
2930     
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
  12345
6789101112
13141516171819
20212223242526
27282930   
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
   1234
567891011
12131415161718
19202122232425
262728293031 
       
 123456
78910111213
14151617181920
21222324252627
282930    
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
   1234
567891011
12131415161718
19202122232425
2627282930  
       
1234567
891011121314
15161718192021
22232425262728
293031    
       
1234567
891011121314
15161718192021
22232425262728
       
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
      1
2345678
9101112131415
16171819202122
23242526272829
30      
   1234
567891011
12131415161718
19202122232425
262728293031 
       
 123456
78910111213
14151617181920
21222324252627
282930    
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
1234567
891011121314
15161718192021
22232425262728
2930     
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
  12345
6789101112
13141516171819
20212223242526
27282930   
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
     12
3456789
10111213141516
17181920212223
242526272829 
       
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
    123
45678910
11121314151617
18192021222324
252627282930 
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
      1
2345678
9101112131415
16171819202122
23242526272829
30      
   1234
567891011
12131415161718
19202122232425
262728293031 
       
1234567
891011121314
15161718192021
22232425262728
293031    
       
     12
3456789
10111213141516
17181920212223
24252627282930
       
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
1234567
891011121314
15161718192021
22232425262728
2930     
       
    123
45678910
11121314151617
18192021222324
25262728293031
       
    123
45678910
11121314151617
18192021222324
25262728   
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
     12
3456789
10111213141516
17181920212223
24252627282930
31      
   1234
567891011
12131415161718
19202122232425
2627282930  
       
1234567
891011121314
15161718192021
22232425262728
293031    
       
     12
3456789
10111213141516
17181920212223
24252627282930
       
  12345
6789101112
13141516171819
20212223242526
2728293031  
       
      1
2345678
9101112131415
16171819202122
23242526272829
3031     
    123
45678910
11121314151617
18192021222324
252627282930 
       
 123456
78910111213
14151617181920
21222324252627
28293031   
       
      1
2345678
9101112131415
16171819202122
23242526272829
30      
   1234
567891011
12131415161718
19202122232425
262728293031 
       

RECOMMENDED

Government expecting $1.2bn in IMF disbursement for 2023 –Dr Adam

Government expecting $1.2bn in IMF disbursement for 2023 –Dr Adam

May 15, 2023
Rationalising Decisions: The Psychology of Making Sense of the Nonsensical

Rationalising Decisions: The Psychology of Making Sense of the Nonsensical

May 15, 2023

MOST VIEWED

Plugin Install : Popular Post Widget need JNews - View Counter to be installed
  • Energy
  • Health
  • Auto
  • International
  • Subscription Form
  • Staff Webmail
  • About Us
  • Contact Us
Call us: +233 24 432 0902 | info@goldstreetbusiness.com

© Copyright © 2020 goldstreetbusiness.com. All Rights Reserved.

No Result
View All Result
  • Homepages
    • Homepage Layout 1
    • Homepage Layout 2
  • World
  • Business
  • Technology
  • Health

© Copyright © 2020 goldstreetbusiness.com. All Rights Reserved.

Login to your account below

Forgotten Password?

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
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.