The Managing Director of GCB Bank, Mr. Anselm Ray Sowah has announced that the bank will review its lending rates downwards for corporate customers of collapsed UT bank and Capital bank to the level of existing GCB’s corporate clients.
As at July this year, GCB’s base rate was at 24.8 percent while UT bank and Capital bank were at 30.1 percent and 32 percent respectively.
GCB bank recently took over the operations of UT bank and Capital bank after the two entities collapsed.
Speaking to journalists after meeting the corporate customers of UT bank and Capital bank, the Managing Director of GCB Bank, Mr. Anselm Ray Sowah however stated that the exercise will depend on the amount of deposit, among other conditions.
“For the benefit of the corporate customers of the ex-UT and Capital banks, GCB will be reviewing the lending rates downwards to the level of GCB’s existing corporate clients,” he said.
Mr. Sowah added that the exercise will be based on several factors including the maturity period of the facility and its size.
“GCB has the right balance sheet to support big transactions and large ticket deals that you will appreciate. It means that GCB has the capacity to offer customers a one-stop solution to their banking needs rather than you having to deal with different banks,” he said.
Despite complains of long queues and delay in clearing of cheques, Mr. Sowah assured that the bank has equipped its systems to deliver on time and satisfactorily.
He stated for example that the bank has resourced its branches across the country to enhance service delivery to all Ghanaians.
BoG on Monday gave GCB Bank Ltd the green light to acquire UT and Capital banks.
A statement from the central bank and copied to Citi Business News 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’.
BoG also revoked the licenses of the two bank saying “this action has become necessary due to severe impairment of their capital.”
The Ghana Stock Exchange (GSE) has suspended the listing status of UT Bank following its collapse and subsequent takeover by Ghana Commercial Bank.
The latest development is said to be part of moves by government through the BoG to restructure the banking industry.
By: Lawrence Segbefia/citibusinessnews.com/Ghana