{"id":344760,"date":"2017-08-14T13:28:40","date_gmt":"2017-08-14T13:28:40","guid":{"rendered":"http:\/\/citifmonline.com\/?p=344760"},"modified":"2017-08-14T13:28:40","modified_gmt":"2017-08-14T13:28:40","slug":"bog-to-sanction-officials-behind-ut-capital-bank-collapse","status":"publish","type":"post","link":"https:\/\/citifmonline.com\/2017\/08\/bog-to-sanction-officials-behind-ut-capital-bank-collapse\/","title":{"rendered":"BoG to sanction officials behind UT, Capital Bank collapse"},"content":{"rendered":"
The Bank of Ghana (BoG) has said it will investigate and sanction officials whose activities led to the collapse of UT Bank and Capital Bank.<\/p>\n
\u201cThe last phase of the BoG\u2019s action would involve a thorough investigation of operations of UT Bank and Capital Bank and appropriate action will be taken against shareholders, Directors, and key a Management personnel who are found to be culpable,\u201d the BoG Governor, Dr. Ernest Addison revealed during a press conference.<\/p>\n
[contextly_sidebar id=”Do6wP0i9V5mk8cp6LWy3ZBqFH5PkNkon”]This follows the Central Bank’s announcement of the collapse of both banks, following their inability to turn around their negative capital adequacy position.<\/p>\n
This necessitated a\u00a0Purchase and Assumption agreement allowing GCB Bank to take over all deposit liabilities and selected assets of both UT Bank and Capital Bank, per section 123 of the Banks and Specialised Deposit-Taking Institutions (SDIs) Act, 2016 (Act 930).<\/p>\n
The governor noted that \u201cUT Bank and Capital Bank were heavily deficient in capital and liquidity and their continuous operation could have jeopardized not only their depositors\u2019 funds, but also posed a threat to the stability of the financial system.\u201d<\/p>\n
\u201cIt, therefore, became necessary for the Bank of Ghana to revoke their licenses and approve a Purchase and Assumption (P&A) transaction to allow GCB Bank, a large bank with the right balance sheet, to take over all deposits and selected assets of UT Bank and Capital Bank.”<\/p>\n
Dr. Addison also reiterated to customers of the two banks that their investments were safe and that “no depositor will lose his or her funds and all depositors can continue to do normal banking business with GCB Bank.”<\/p>\n
Find below the full address from the BoG governor<\/strong><\/p>\n BOG STATEMENT ON UT BANK & CAPITAL BANK<\/p>\n Thank you for your attention.<\/p>\n –<\/p>\n By: citifmonline.com\/Ghana<\/p>\n","protected":false},"excerpt":{"rendered":" The Bank of Ghana (BoG) has said it will investigate and sanction officials whose activities led to the collapse of UT Bank and Capital Bank. \u201cThe last phase of the BoG\u2019s action would involve a thorough investigation of operations of UT Bank and Capital Bank and appropriate action will be taken against shareholders, Directors, and […]<\/p>\n","protected":false},"author":14,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[10,11],"tags":[793,10175,3,10177],"yoast_head":"\n\n