President Nana Addo Dankwa Akufo-Addo has commended the Bank of Ghana (BoG) for the bold step it took to revoke the licences of the now defunct UT and Capital banks to bring sanity into the banking sector.

According to President Akufo-Addo, this demonstrates the preparedness of the central bank to gain confidence in the banking industry, and urged the BoG to work within its remit, to address the challenges affecting the banking sector.

The President made the remark in a speech during the 60th anniversary ceremony of the central bank, under the theme: “Celebrating 60 Years of Central Banking in Ghana: Achievements, Challenges and Prospects” in Accra at the Kempinski Gold Coast Hotel.

“My understanding is that a road-map for addressing banking sector weaknesses is being implemented. I urge you, as the nation’s central bank, to remain committed to the process and to address the challenges confronting the banking sector.

This will not only guarantee financial stability, but also promote greater confidence in that sector. Your most recent measures, in intervening decisively over the matters of UT Bank and Capital Bank, demonstrate your preparedness to act in a manner worthy of a responsible central bank, of a praiseworthy regulator. I am confident that you have the support of the nation,” he expressed.

GCB Bank on Monday, 14 August 2017, took over transfers of all deposits and selected assets of UT Bank and Capital Bank after a purchase agreement as the two banks were struggling to operate financially.

“The Bank of Ghana has approved a Purchase and Assumption transaction with GCB Bank Limited that transfers all deposits and selected assets of UT Bank Ltd and Capital Bank Ltd to GCB Bank Ltd. The Bank of Ghana has revoked the licenses of UT Bank Ltd and Capital Bank Ltd. This action has become necessary due to severe impalement of their capital. 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.

The main offices and branches of UT Bank and Capital Bank will be under the control of GCB Bank, and will be opened at 1 PM today for normal business transactions.” A statement issued by the central bank.

By:Sammy Adjei/Newsghana.com.gh