BoG denies rumours that more banks will collapse

The Governor of the Bank of Ghana Dr Ernest Addison has denied claims that other banks in the country may also collapse soon.

He was speaking at a press conference in Accra to address some concerns on the collapse and subsequent takeover of UT Bank and Capital Bank.

Dr Addison said the rest of the banks in Ghana have a solid capital investment.

“We only have two insolvent banks in Ghana which is 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.”

His comments follow claims by a Deputy Finance Minister Kwaku Kwarteng that some more banks are facing financial challenges and may also collapse if strategic measures are not taken by management to salvage the situation.

Dr Addison at the press conference also said the Central Bank will sanction stakeholders and management who caused the collapse of both banks.

“The last phase of the BoG’s action would involve a thorough investigation of operations of UT Bank and Capital Bank and appropriate action will be taken against shareholders, Directors, and key management personnel who are found to be culpable,” he said.