The Bank of Ghana has revoked the licenses of 5 banks namely; uniBank Ghana Limited, The Royal Bank Limited, Beige Bank Limited, Sovereign Bank Limited, and Construction Bank Limited. Consolidated Bank Ghana which has been granted a universal banking license will be the Receiver of the 5 banks.
“Consolidated Bank Ghana Limited will act as a bridge bank pursuant to section 127 (11) of Act 930, to assume some of the assets and liabilities of the five banks. The Government has capitalized the new bank in the amount of GH¢450 million ($94.2million) and the Bank of Ghana has issued it with a universal banking license with effect from 1 st August 2018.” According toDoobia.com Ghana’s business and financial portal
The Bank of Ghana has also approved a Purchase and Assumption Agreement between Consolidated Bank and the Receiver for the five banks. Under the Agreement, Consolidated Bank will acquire all deposits and other specified liabilities, and good assets of the five banks. Board members of the respective banks and shareholder will not be part of Consolidated Bank.
To finance the gap between the liabilities and good assets assumed by Consolidated Bank, the Government of Ghana has issued a bond of up to GH¢ 5.76 billion ($1.2 billion).
Bank of Ghana has in the last year rolled out measures to strengthen the financial industry in the country so as to protect the interests of depositors.
Ghana’s banking sector has faced challenges such as poor corporate governance and risk management practices, related party transactions that were not above board, regulatory non-compliance, and poor supervision.