By Abdul Rahman Suagibu –
NEW AFRICA BUSINESS NEWS, Freetown, Sierra Leone- Pharos holding said that, the application of the item on soaring the minimum capital of commercial banks tenfold to LE 5 billion under the new banks law will inspire many banks to increase capital, except for the two international commercial banks and Qatar National Bank.
The investment bank added that, banks that surpassed the required minimum capital may be inclined to inject these retained earnings into the paid-up capital.
It added that, the other banks whose capital is well below the required limit may seek to merge, acquire or raise the capital of the Egyptian Gulf and the Suez Canal, but this will depend on the timing the law will come to force.
The new banking law draft states clearly and firmly in raising the minimum capital of commercial banks to LE 5 billion from the current limit to LE 500 million, increasing it to $150 million for foreign-banks, allocating no more than 1% of profits to the Development Fund for the Banking sector in addition to cancelling the maximum period of appointment of the heads of banks and members of board of directors.
1.00 United States -Dollar = 8,885.00 Sierra Leone -Leone – 05/31/ 2019
For New Africa Business News Abdul Rahman Suagibu Reports, Africa Correspondent