On August 1, 2018, the Bank of Ghana announced the revocation of the license of five commercial banks. The governor of the central bank, Dr. Ernest Addison announced that the Bank has revoked the licenses of uniBank Ghana Limited, The Royal Bank Limited, Beige Bank Limited, Sovereign Bank Limited, and Construction Bank Limited and appointed Mr. Nii Amanor Dodoo of KPMG as the Receiver for the five banks. The Bank also announced the formation of Consolidated Bank Ghana Ltd to take over the assets and liabilities of the five banks.
In response to an email enquiry for comments on the development, the rating agency, Moody’s says the actions by the Bank of Ghana is credit positive for the country’s banking sector.
“The Bank of Ghana establishing Consolidated Bank Ghana Limited to take over the good assets and liabilities of five Ghanaian banks whose licences it revoked is credit positive for Ghana’s banking system because it strengthens its financial stability. That said, the consolidation could have implementation risks as the five banks have different cultures and risk exposures,”Peter Mushangwe, an African banking analyst at Moody’s told ghanabusinessnews.com.
Dr. Addison indicated that Ghana needs a strong and stable banking sector to drive the process of economic transformation, and hence the decision.
“All deposits of the five banks are safe and have been transferred to the Consolidated Bank. Customers can carry out their business as usual at their respective banks which will now become branches of the Consolidated Bank. All staff of these banks will become staff of the Consolidated Bank. Boards of Directors and shareholders of these banks no longer have any roles,” he said.
By Emmanuel K. Dogbevi
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