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Bank of Ghana to investigate, prosecute directors of UT Bank and Capital Bank

Bank of Ghana says the last phase of the revocation of the licenses of the two distressed banks announced this morning, UT Bank and Capital Bank will be to thoroughly investigate their operations and if any of the directors is found culpable, they would be prosecuted.

The Bank of Ghana announced this morning that the GCB Bank has taken over UT Bank and Capital Bank, and assured customers of the two banks that their deposits are safe.

The central bank said in a press release issued Monday August 14, 2017 and copied to ghanabsuisnessnews.com, that it 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.

“The Bank of Ghana has revoked the licences of UT Bank Ltd and Capital Bank Ltd. This action has become necessary due to severe impairment of their capital. The remaining assets and liabilities will be realised and settled respectively through a receivership process to be undertaken by Messers Vish Ashiagbor and Eric Nana Nipah of PricewaterhouseCoopers (PwC). 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. Customers of UT Bank and Capital Bank are now customers of GCB bank,” it said.

Speaking to journalists at a press conference in Accra today, Governor of the central bank, Dr, Ernest Addison said in the last phase of the process, the operations of UT Bank and Capital Bank will be thoroughly investigated, and if any of the directors or shareholders are found culpable, action will be taken against them.

“The last phase is to do thorough investigations of the operations of the two banks and action will be taken against those found culpable,” he said.

He said there were other bidders for the take-over but GCB Bank was selected, because it is the right bank with the right liabilities.

UT Financial Services bought majority shares in troubled BPI Bank sometime in 2009 and rebranded the bank UT Bank.

Capital Bank was until two years ago when it was given a banking license, Capital Plus Financial Services.

By Emmanuel K. Dogbevi

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