Collapse of Banks EOCO summons directors of UT and Capital banks

The directors of UT Bank will appear before EOCO on Wednesday, March 28, 2018, while their counterparts from Capital Bank will appear on Wednesday, April 4, 2018.

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The directors of the collapsed UT and Capital banks are expected to appear before the acting Executive Director of the Economic and Organised Crime Office (EOCO) to tell what role they played in the collapse of the two banks.

According to the Daily Graphic, the directors of UT Bank will go to EOCO on Wednesday, March 28, 2018, and their counterparts from Capital Bank will appear on Wednesday, April 4, 2018.

The invitation follows the findings of an investigation conducted after the collapse the two banks.

READ ALSO: It’s normal for salaries to delay at Legon – UTAG

The investigation revealed that the two banks were run by owner chief executives, with complete disregard for internal rules and banking regulations.

The Governor of the BoG, Dr Ernest Addison, earlier said the two banks suffered from weak corporate governance standards.

“The principal factors that caused the demise of the two banks were very poor banking practices existing within the banks,” he said.

In August 2017, the Bank of Ghana oversaw the takeover of UT and Capital Banks by GCB Bank in a purchase and assumption agreement.

This was because the 2 banks faced serious liquidity challenges at the time which affected the continuous existence and the financial industry altogether.

READ ALSO: Pay for the loans you borrow – Terkper to government

Subsequently, the GCB Bank has collapsed at least thirty-one (31) branches of the defunct UT and Capital banks.

This is after the GCB Bank completed the full integration of the systems of the 2 banks.

A statement issued indicated that the closing down of some of the defunct branches brings the total number of GCB Bank’s branches to 183.

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