It has emerged that over ninety percent [90%] of defunct Unibank’s loan books was non-performing as at March 2018.
According to the Official Administrator’s report, Unibank had 3.4 of the 3.73 billion cedis, non performing; a development which affected the performance of the bank.
The Official Administrators, KPMG were made to assume the management of the defunct Unibank following the Bank of Ghana’s discovery of severe capital and liquidity issues.
KPMG was to manage the bank for six months; spanning 20th March to August 1, 2018.
Aside the non performing loans, Unibank had also overstated its loans and advances to customers by 1.3 billion cedis in December 2017 prudential returns to the Bank of Ghana.
Again, there was the exclusion of customer deposits of 2.3 billion cedis from December 2017 prudential returns to BoG.
This represents 53% of total deposits of 4.3 billion cedis
Moreover, loans and advances to the tune of 3.7 billion cedis that had been advanced to shareholders, related and connected parties were assessed as impaired.
Meanwhile, based on Capital Adequacy Framework, capital deficit was 7.4billion cedis which led to inadequate cash flows to meet short to medium term maturing obligations and made the balance sheet insolvent.
By: Pius Amihere Eduku/citibusinessnews.com/Ghana