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GCB Bank takes over UT and Capital Banks

The suspected insolvency in some commercial banks that has been brewing for some time now seems to have finally hit reality with the announced take-over of two commercial banks by the GCB Bank Ltd.

The Bank of Ghana announced this morning that the GCB Bank has taken over UT and Capital Banks, 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.

The Bank of Ghana indicated that all deposit customers will however, continue to have access to their funds.

It notes further that the branches of the two banks and their ATMs will continue to operate as normal as GCB bank branches and ATMs.

As a result of the take-over, the central bank stated that all the staff of the two banks in the interim will become staff of GCB bank and GCB Bank will negotiate the terms of their contract.

“GCB was selected amongst three 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. 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 added.

The Bank assured the public that the approval of this transaction is to strengthen Ghana’s banking sector, ensure financial stability and protect depositors’ funds.

“The Bank of Ghana reassures 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,” id said.

By Emmanuel K. Dogbevi

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