“We only have two insolvent Banks in Ghana which are UT and Capital Banks” – BoG

The Bank of Ghana (BoG) has dismissed report suggesting that more banks are on the verge of collapsing following the sale of UT Bank and Capital Bank to GCB Bank.

“We only have two insolvent banks in Ghana which are UT and Capital banks. So this talk about ‘they are not the only banks’ is really unfounded. These are the only insolvent banks that we have in the system and those are the ones that we have resolved,” Dr Ernest Addison, Governor of the Bank of Ghana, stated at a press conference on Monday, August 14.

Meanwhile, the BoG has assured customers of defunct UT and Capital Banks not to panic as their deposits are safe following the takeover of the two financial institutions.

Following the announcement of the takeover, some customers of UT and Capital Banks thronged to their various branches to withdraw their savings out of fear of losing them.

However, Dr Addison guaranteed that customers’ savings were safe.

“The Purchase and Assumption transaction has distinct benefits as customers will suffer no loss, the acquiring bank can increase its market share, and productive financial assets are maintained,” he stated.

Dr Addison stressed: “The first point of emphasis is that, no depositor will lose his or her funds and all depositors can continue to do normal banking business with GCB Bank.”

The main offices and branches of UT Bank and Capital Bank are now under the control of GCB Bank and were opened at 1PM on Monday for normal business transactions.

Source: ClassFMonline.com

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