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Ghana settles banking cleanup as most lenders meet demands

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Reforms announced in September 2017 triggered a series of capital-raising efforts by banks ranging from initial public offerings to rights offers and mergers.

Sunday 06, January 2019

(Bloomberg)--Ghana completed a cleanup of its banking industry in which lenders were required to raise their capital and improve governance, with two-thirds of them meeting the new requirements, Bank of Ghana Governor Ernest Addison said.

The West African nation has “23 well-capitalised” banks, compared with 34 previously, which raised their holdings to at least GHC 400 million ($81.1 million), Addison told reporters Friday in the capital, Accra.

Reforms announced in September 2017 triggered a series of capital-raising efforts by banks ranging from initial public offerings to rights offers and mergers, while the regulator revoked the licenses of at least seven lenders.

Ghana issued a total of about GHC 12 billion in bonds to save some banks, Addison said. “It’s been a very expensive cleanup,” he said.

TAGS : Ernest Addison, Reforms

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