Ghana: Central bank collapses five banks, takes over assets

Ghana: Central bank collapses five banks, takes over assets

The Bank of Ghana (BoG) has revoked the licenses of five banks operating in Ghana and merged them into one bank, APA learns here.The uniBank, The Royal Bank, The Construction Bank, The Sovereign Bank and the Beige Bank, were found to have committed various regulatory and financial breaches that made them insolvent and unfit to continue operations.

A press conference addressed by the Governor of the BoG, Dr. Ernest Addison, said they have therefore been merged into the Consolidated Bank Ghana Limited and has been issued with a licence to commence operations on August 1, 2018.

He said owing to their present situation, the government has capitalised the bank with GH¢450 million (about $1million) and issued a bond of GH¢5.76 billion ($1.1billion) for its stability.

Dr. Addison explained that the collapse of the banks was part of measures to holistically address the weaknesses in the banking sector of the country.

He, however, gave an assurance that, “all deposits of the five banks are safe and have been transferred to the Consolidated Bank. All Customers will have immediate access to their funds through the existing branches of the Consolidated Bank.”

The merger of the five banks comes barely a year after the BoG announced the takeover of Capital Bank and UT Bank by the Ghana Commercial Bank, following their failure to meet the minimum capital requirements.

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