Bank of Ghana (BoG) has said, it will investigate and sanction officials whose activities led to the collapse of UT Bank and Capital Bank.
“The last phase of the BoG’s action would involve a thorough investigation of operations of UT Bank and Capital Bank and appropriate action will be taken against shareholders, Directors, and key management personnel who are found to be culpable,” the BoG Governor, Dr. Ernest Addison revealed during a press conference yesterday in Accra.
This follows an announcement by the Central Bank of the collapse of both banks, following their inability to turn around their negative capital adequacy position.
That, according to BoG necessitated a Purchase and Assumption agreement allowing GCB Bank to take over all deposit liabilities and selected assets of both UT Bank and Capital Banks, per section 123 of the Banks and Specialised Deposit-Taking Institutions (SDIs) Act, 2016 (Act 930).
The governor noted that “UT Bank and Capital Bank were heavily deficient in capital and liquidity and their continuous operation could have jeopardized not only their depositors’ funds, but also posed a threat to the stability of the financial system.”
Source: GhanaWeb
