New least capital would make banks vigorous

 New least capital would make banks vigorous

The eagerly awaited declaration of another base capital prerequisite for widespread banks in the nation has at long last been made. The minimum capital requirement has been raised from the current 120 million GH by the Bank of Ghana (BoG) to 400 million GH. In order to support economic growth and cover the risks associated with their operations, the banks must increase their capital by December 2018 to strengthen their books.

Banks that fail to meet the requirement by the deadline are anticipated to be sanctioned. The increase, which is almost a 24% adjustment in reserves, is the largest in the country's banking history. The Daily Graphic supports the central bank's decision to address a long-standing issue that has posed a risk to the banking sector for a number of months.

We gather information from the ground indicating that some banks are pleading with the industry regulator to lower the number. However, we do not support that request and urge the BoG to firmly maintain the minimum capital requirement.

Several years ago, Nigeria had a lot of banks because opening a bank became more of a way to show off one's wealth than to do the kind of work that banks had to do. After the then Legislative head of the Bank of Nigeria raised the base capital, the banks had to unite. Nigeria's banking industry is said to be one of the strongest on the continent today, with some banks entering the European and Asian markets to compete with other industry giants.

There were approximately 34 banks at the time of the last count, with a few more awaiting full operating licenses. The ones in the pipeline are those that transformed from microfinance to reserve funds and advanced organizations and presently need to become widespread banks.

It is our conviction that the area ought to be more grounded monetarily to attempt high-end projects as well as better safeguard the interest of investors. The period when we considered banking to be a common business to show one's abundance in the public eye is finished and we should be serious, as a nation, by having a very much promoted financial area. Due primarily to a lack of capital, two banks, Capital and UT, have already been eliminated as a result of GCB Bank's takeover. With deposits accounting for 73% of total liabilities, Ghanaian banks continue to benefit from steady and robust deposit inflows.

It is essential to note that the industry has adequate liquidity buffers, primarily in local currency. These buffers consist of 25% of total assets held in cash and with banks and 24% of total assets held in investments, primarily government bonds. With this new capital prerequisite, we anticipate that the single responsibility should be broken to clear the way for a more hearty area through consolidations and acquisitions.

Let's take advantage of this opportunity!

 Last week, a new video streaming service went live. Unlike other services that are very similar to it, iFlix wants to give local content producers a chance to make movies and TV shows. This will be distributed to all of its markets. As per the directors of the help, they have proactively procured some satisfaction from the makers and will commission more in the not-so-distant future.

This is positively extraordinary news thinking about the condition of our neighborhood industry. There is insufficient local content on television these days due to the influx of Mexican and Indian soaps, and the movie industry is already in a slump that may be difficult to recover from.

Not everything has been this way always. We can think back to great television shows like "Inspector Bediako," "TV Theatre," "Ultimate Paradise," "Osofo Dadzie," and "Villa Kakalika," among others, that was watched by a lot of people.

Sadly, some of the reasons why we are where we are are unprofessionalism, a lack of original content, and the desire of local content producers to sometimes milk television stations off of too much money. Duplicating itself isn't awful however we really want to further develop what we duplicate and make them particularly our own. The circumstance isn't altogether sad Showbiz accepts and with the right designs, we realize that the business will have areas of strength for return.

We urge the local content producers to take advantage of this opportunity to tell original and thought-provoking stories that will not only make Ghana proud but also gain them international recognition, and we hope that IFlix will continue to support the local industry.