President Akuffo Addo has commended the Bank of Ghana for its decision to revoke licenses of UT and Capital bank over capital adequacy challenges.
The President believes the decision will aid in addressing the weakness in the country’s banking sector.
The central bank on Monday granted GCB Bank permission to purchase UT and Capital Bank.
The governor explained that the two banks had failed to comply with regulations guiding the banking operations in the banking sector.
Speaking at the 60th anniversary of the Central Bank, the President urged the Central bank to remain committed and address challenges in the banking 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 praise worthy regulator. I’m confident that you have the support of the nation,” he stated.
He further urged the Central Bank to address weaknesses in the banking sector.
“My understanding is that the roadmap 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” Akufo-Addo added.
UT, Capital Bank collapse; GCB to the rescue
The Bank of Ghana (BoG) has given GCB Bank Ltd the green light to acquire two local banks UT and Capital bank.
A statement from the central bank and copied to Citi Business News on Monday (14th August,2017) said, ‘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 to GCB Bank Ltd’.
According to the central bank, it has also ‘revoked the Licences of UT Bank Ltd and Capital Bank Ltd. This action has become necessary due to severe impairment of their capital’.
The latest development is part of moves by government through the Bank of Ghana (BoG) to restructure the banking industry.
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By: Jessica Ayorkor Aryee/citibusinessnews.com/Ghana