Bank of Ghana withdraws licenses of UT, Capital Bank; appoints GCB to take over institutions
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 copied to Citi Business New 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.
Citi Business News has gathered the remaining assets and liabilities
of the two banks will be realised and settled respectively through a
receivership process to be undertaken by Messers Vish Ashiagbor and Eric
Nana Nipah of PricewaterhouseCoopers (PwC).
According to the central bank the main offices and branches of UT
Bank and Capital Bank will be under the control of GCB bank and will be
opened at 1pm today for normal business transactions.
The takeover of two banks, at the same time, will be the first and biggest in the history of the banking industry in Ghana.
The move is to rescue the two from further challenges as both balance sheets are currently in the red.
‘This action has become necessary due to severe impairment of their
capital. The approval by the Bank of Ghana of this transaction is to
strengthen Ghana’s banking sector, ensure financial stability and
protect depositors’ funds’. The statement said.
Three banks Citi Business News has learnt bid to purchase the two
banks but according to the central bank ‘GCB was selected amongst 3
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’.
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