The Governor of the Bank of Ghana, Dr. Paul Acquah, has announced government intention to embark on a major shake up of the banking rules of the country by empowering the Bank of Ghana to halt the appointments of directors and senior management considered detrimental to the bank and depositors.

It would also be empowered to review and reject as it considers appropriate any proposal to transfer significant ownership or controlling interest in existing banks to other parties.

The banking bill currently under parliamentary consideration gives authority to the Bank of Ghana to facilitate the merger of a distressed bank with a healthy bank or take any action it considers necessary without consulting the Minister for Finances.

Dr. Acquah added that the bill, when passed into law, increases the capital adequacy requirement from six per cent to ten per cent in line with international standards and practices as contained in the Basle Capital Accord in order to strengthen the banks capacity to absorb risks.