Ghana: Bank of Ghana Revokes Licenses of Five, Establishes New Indigenous Bank
Government has established a new indigenous Bank--Consolidated Bank Limited-- in place of five local banks whose licenses have been revoked, with immediate effect, by the Bank of Ghana (BoG).To that effect, all deposits of the five banks have been transferred to the Consolidated Bank and all staff of the five banks will become staff of the Consolidated Bank, except the Boards of Directors and shareholders who would no longer have any role to play in the affairs of the Consolidated Bank. The five banks are UniBank Ghana Limited, Royal Bank Limited, Beige Bank Limited, Sovereign Bank Limited and Construction Bank Limited. Dr Ernest Kwamina Yedu Addison, Governor of the Bank of Ghana (BoG), who announced these at a news conference in Accra, yesterday, disclosed that Mr Amanor Dodoo had been appointed as the Receiver for the five banks. Dr Addison assured all customers that their deposits were safe and that all customers should carry out business at their respective banks which would now become branches of the Consolidated Bank. He expressed the commitment of BoG to supporting the orderly development of Ghana's banking sector, including indigenous Ghanaian banks while promoting a strong and resilient sector to drive Ghana's economic growth. Explaining the rationale for BoG's action against the five banks, he said, BoG was mandated by law to promote the safety, soundness and stability of the financial system and to protect the interest of depositors. Dr Addison said in the implementation of that mandate, BoG identified weaknesses and legacy problems that had emerged in the banking sector, leading to a significant build-up of vulnerabilities which required stringent measures to address in order to restore the stability and resilience of the financial system. Read more on AllAfrica.