Managing Director of FBN Bank Ghana, Victor Yaw Asante has advised banks to be more prudent in their operations to ensure a robust banking sector.

This, he believes, will prevent them from going back to the state within which it was before the banking sector cleanup by the Bank of Ghana.

The Central Bank increased the minimum capital requirement of banks to GH¢400 million as a means of sanitizing the banking sector.

Out of 53 banks, only 23 banks managed to meet the requirement.

While speaking to Citi Business News in an interview, Mr. Victor Yaw Asante said banks must be judicious in operating to avoid a return to its old state.

“I think banks should be prudent, should stick to what they know; should not be reckless and once they follow through their own structures because you notice that most of the banks actually have very robust, well credit rating, underwriting standards that they follow.

The problem arises when people depart from these well rating internal decrement that they must follow so banks must ask themselves questions about how aggressive they have been or how reckless or otherwise they have been and make sure they take their time about such details.

If we keep at what we are now, I have every confidence that we won’t go back to where we came from,” he said.

Citi news

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