Bank of Ghana
Bank of Ghana

The Bank of Ghana (BoG) has revoked the licenses of two Ghanaian banks; UT Bank Limited and Capital Bank Limited the BoG confirmed here Monday.

The state-owned Ghana Commercial Bank (GCB) has been given the mandate to take over the operations of the two banks.

A statement issued by the Communications Department states, “The Bank of Ghana has approved a purchase and assumption transaction with GCB Bank Ltd that transfers all deposits and selected assets of UT Bank Ltd and Capital Bank Ltd. The Bank of Ghana has revoked the licenses of UT Bank Ltd and Capital Bank Ltd.”

The central bank explained the action has become necessary due to the severe impairment of the capital of the aforementioned banks.

BoG announced “the remaining assets and liabilities will be realised and settled respectively through a receivership process to be undertaken by Messers Vish Ashiagbor and Eric Nana Nipah of PricewaterhouseCoopers (PwC).”

Meanwhile, the main offices and branches of UT Bank and Capital Bank will be under the control of GCB Bank and will be opened at 1pm today (August 14, 2017) for normal business transactions. Customers of UT Bank and Capital Banks are now customers of GCB Bank. All deposit customers and ATMs will continue to operate as normal as GCB Bank branches and ATMs.

All staff of the two banks, the central bank stated “will in the interim become staff of GCB Bank and GCB will negotiate the terms of their contract,” the statement said.

The BoG assured the general public customers could continue normal banking business at all UT Bank and Capital Bank facilities which are now branches of GCB Bank.

The further stated, “The approval by the Bank of Ghana of this transaction is to strengthen Ghana’s banking sector, ensure financial stability and protect customer’s deposits. The Bank of Ghana reassures customers of UT Bank and Capital Bank that their money is safe and they can continue to do business at their respective branches which are now the branches of GCB Bank.”

The central bank has in recent times been criticized by the general public for not playing its supervisory role well leading to various ponzi schemes vis-à-vis ‘DKM’, ‘God is Love’ and others duping people of various sums of money.

Source: Xinhua/Newsghana.com.gh