Defunct Beige Bank Fixed Deposit Withdrawals Blocked

Consolidated Bank Ghana (CBG) Limited has announced that customers who operated fixed deposit accounts with defunct Beige Bank cannot make withdrawals for the next ten days.

This, according to the bank, has become necessary to enable CBG to address accounting anomalies in the fixed deposit accounts between Beige Bank and its related company, Beige Capital Asset Management (BCAM).

The CBG in a memo and signed by the Chief Executive Office, Daniel W. Addo said "effective immediately there will be no redemptions or withdrawals on all fixed deposits accounts held by the erstwhile Beige Bank."

It said the CBG had noticed "that there are certain accounting anomalies in the fixed deposits accounts between Beige Bank and Beige Capital Asset Management."

The statement explained that the CBG had initiated a reconciliation assignment which was expected to be completed within the next then days.

It said a notice had been placed in all banking halls of CBG and additional the bank would advise customers of the new directive by Short Message Service (SMS).

"We look forward to your cooperation as we resolve this challenge and request that you are courteous and exercise patience for customers during this period," it said.

The Bank of Ghana (BoG) a couple of weeks ago revoked the banking license of collapsed Beige Bank due to the fact of that the bank procured its license through false pretences.

Among other regulatory breaches, the BoG further said the funds purportedly used by the bank's parent company to recapitalise were sourced from the bank through an affiliate company and in violation with regulatory requirements for bank capital and the bank's Capital Adequacy Ratio was assessed to be negative 17.8 percent as against the regulatory minimum of 10 percent, thus, recording a capital deficit of GHc159, 162,557.64, rendering the bank insolvent.

Defunct Beige Bank started operations as Microfinance Company in 2008 and transitioned into a Savings and Loans company in 2012 and subsequently became a bank in 2016.

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