The Bank of Ghana (BoG) has appointed an Advisor to directly supervise operations of Sovereign Bank.
According to Accra-based Joy FM, this happened around the same time the BoG appointed an administrator to take over the management of UNIBANK earlier this year.
The Central Bank took this decision because it was not happy with the state of affairs at the Bank.
Before this decision was taken, there was several back and forth between the bank and BoG with hearings on many occasions.
The BoG in such meetings and correspondence asked the Sovereign Bank to change its modus operandi but they
This follows other supervisory reports and failure to comply with directives decided to take remedial action by appointing an Advisor.
What is the role of an Advisor?
- Having been served with an order appointing an advisor to the Bank, the Central Bank expects Sovereign Bank to comply with the order and extend their full co-operation to the Advisor.
- The Advisor will be entitled to attend the meetings of the board of directors of the bank, and any such decision-making body in the bank and will be expected to participate fully in the deliberations of such meetings.
- The views of the Advisor are expected to be recorded in the minutes of the meetings, although the advisor, shall not vote on a matter for determination by the meeting.
- It is not clear how long the Advisor will be at the Bank, but JOYBUSINESS understand that for him to have a full picture of the operations of the bank and understand the shortcoming to help address follow-up actions on examination and other supervisory reports that raised concerns, this Advisor could be a post for over a year.
- This Advisor shall furnish the Bank of Ghana with a status report on the bank as frequently as possible and will give recommendations on the next course of action to enhance the operational efficiency of the bank
- The Sovereign Bank will bear all expenses of the Advisor in the discharge of its duty.
Sovereign Bank Limited (SBL) is a full-service bank with a principal aim of making a difference in the banking and financial services landscape by being unique in its service delivery and product offering.
Incorporated on 9th October 2015 in Accra- Ghana, Sovereign Bank Limited was granted a Universal Banking license by the Bank of Ghana under the new Banking Act 2004 (Act 673) on 21st January 2016.