The Bank of Ghana (BoG) has revoked the Licences of UT Bank Ltd and Capital Bank Ltd due to severe impairment of their capital.

In this direction, the BoG said it had 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 to GCB Bank Ltd.

A statement issued by the Communications Department of the BoG said the remaining assets and liabilities would be realised and settled through a receivership process to be undertaken by Messrs Vish Ashiagbor and Eric Nana Nipah of PricewaterhouseCoopers (PwC).

It said the main offices and branches of UT Bank and Capital Bank would be under the control of GCB Bank and would be opened at 1300 hours on Monday for normal business transactions.

The statement assured customers of UT Bank and Capital Bank that they would continue to have access to their funds.

“UT Bank and Capital Bank branches and ATMs will continue to operate as normal as GCB bank branches and ATMs. All staff in the interim will become staff of GCB Bank and GCB Bank will negotiate the terms of their contract,” the statement said.

GCB was selected amongst three others on the basis of purchase price, cost of funding, branches to be retained, staff to be employed and impact on the acquiring bank’s capital adequacy ratio.

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

The approval by the BoG of this transaction is to strengthen Ghana’s banking sector, ensure financial stability and protect depositors’ funds, the statement added.

“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,” it said.

Source: GNA/Newsghana.com.gh