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’.
Meanwhile the Bank of Ghana has assured deposits of customers are safe and banking operations of the two banks will continue as normal.
‘The Bank of Ghana assures the public that all customers can continue normal banking business at all UT Bank and Capital Bank facilities which are now branches of GCB bank’.
It also reassured customers of UT Bank and Capital Bank that their money is safe and they can continue to do business at their respective branches which are now the branches of GCB Bank.
By: Vivian Kai Lokko/citibusinessnews.com/GhanaThe 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 ... Read Full Story