This, combined with growing demands for liquidity as a result of oil business, implies that banks must grow their capital buffers to increase their relevance in the industry. Already a number of banks have taken steps to attain, and even exceed, the new minimum capital level of ¢ million set for new entrants into the banking industry, and this is commendable.
Mr. Chairman, in order to provide a transparent framework and level playing field for loan write-offs, the Bank of Ghana issued a notice to all banks on 12th September 2014. In essence, the notice requires banks to apply to the central bank for approval to write off loans that have been non-performing for a period.