Citi News<\/strong> after the BoG announced a thorough investigation of operations of UT Bank and Capital Bank.<\/p>\n[contextly_sidebar id=”40Qdu9MUp8iCaeT3myYed7M2hSPyHOop”]The central bank said appropriate action will be taken against shareholders, Directors, and key a Management personnel who are found to be culpable in the collapse of the banks.<\/p>\n
Ensuring\u00a0accountability in the wake of the collapse of these banks is the prudent next step, according to Mr. Thompson, given there has been some form of negligence.<\/p>\n
“If for example, all the money has been lost because they invested it businesses that fail, that is fair. But if the money has been lost because of negligence then, of course, somebody has to be held accountable because it\u2019s not right. You can\u2019t take my money, squander it and then go away Scott free.\u201d<\/p>\n
“So I think that if individuals or institutions are found to be culpable or involved directly or indirectly in contributing to the Bank\u2019s failure then I think they should be held accountable\u2026 if Dalex Finance collapses because I have taken investors money and put in my pocket, I should be held responsible and that is standard practice.\u201d<\/p>\n
Fallout from collapse<\/strong><\/p>\nDeposits of customers of the two banks will be protected by the government as their takeover by GCB Bank is finalized.<\/p>\n
The\u00a0inability of the banks to turn around their negative capital adequacy position led to their collapse and 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
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However, the BoG has indicated that the shareholders of Capital Bank will not be compensated. The same may apply to UT Bank shareholders, though the\u00a0central bank is considering compensating shareholders listed on the Ghana Stock Exchange.<\/p>\n
Top level management of the two banks, including the Managing Directors, will lose their jobs. It is unclear the fate of the other workers of the two banks, numbering close to 2,000 in total, but negotiations are in place to protect those who want to still work for the distressed banks.<\/p>\n
Possible negligence<\/strong><\/p>\nResearch indicated that UT Bank in a precarious position given it was found to be the riskiest bank in Ghana listed on the stock exchange.<\/p>\n
The situation with Capital Bank has been found to be more nefarious given the existence of a leaked 2014\u00a0memo\u00a0indicating that the bank, then First Capital Plus Bank, was on the verge of collapse.<\/p>\n