UMB hopeful of meeting recapitalization by BoG


UMB Bank has expressed its confidence in meeting the new capital requirement for banks yet to be announced by the Bank of Ghana.

Currently banks are operating with a minimum capital requirement of 120 million cedis, a situation some analysts see as the reason for the 30 banks in the country given the relative small size of the population.

In an interview with Citi Business News, the Chief Executive Officer of UMB, John Awuah however said mergers among banks over the recapitalization, should strengthen the country’s financial sector and equip banks to undertake massive infrastructural projects.

“A country of about 27 million we have over 30 banks and counting, so I think at some point there is going to be that call for integration , we need to have banks that are of the required size to help the development agenda of the country and support the private sector as well”, Mr. Awuah said.

He made these remarks at the sidelines of the opening ceremony of the UMB Centre for Businesses and UMB PPP Incubator Centre.

Speaking on the reason why UMB decided to open a Centre for Business and as well as a PPP Incubator Centre, Mr. Awuah said that the unique needs of SMEs cannot be addressed by the traditional operational parameters of most banks.

“The UMB Centre for Businesses was set up to address the risk and growth needs of SMEs in a manner that is efficient and streamlines the often cumbersome process of accessing credit and advisory support,” he noted

At the event, the Bank also out doored the UMB PPP Incubator Centre, a ground breaking concept that will partner with the government and the private sector to support the One District, One Factory initiative.

It will be recalled that UMB recently pledged to create liquidity space of up to 100 million US Dollars to support this initiative.

This means that for qualified private sector businesses who want to partner with the government to build factories in the districts, the UMB PPP Incubator Centre will provide a wide range of services including technical support and financing to enable them to complete their projects.

By: Anita Arthur/citibusinessnews.com/Ghana



Published on 18 May 2017 | 5:54 pm at Source