uniBank, Beige and 3 other struggling banks merged by BoG

The banks are Beige Bank, Construction bank, Royal bank, uniBank and Sovereign bank.

The Governor of the Bank of Ghana, Dr. Ernest Addison, said that some banks presented fake documents that made it seem they could meet the new capital requirement.

However, time has caught up with them.

GHc400 million capital requirement struggle

In 2017, the Central Bank gave the commercial banks in Ghana until the end of 2018 to raise a GHc400 million new capital requirement. Failure to raise the said amount meant that the banks would close down or become a microfinance or savings and loans institutions.

After this development, most indigenous-owned banks complained and asked that they are given a little more time to meet the new capital requirement.

They also petitioned the president to intervene. But their petition was however rejected.

The BoG advised them to join forces and recapitalise or risk having their licenses revoked

Meanwhile, the foreign-owned banks are not complaining.

Dr Addison earlier revealed that some 15 banks are set to meet the new minimum requirement. This means that 19 others would have to resort to various options available to them in order not to miss the deadline.

Banks takeover

In March 2018, the central bank again announced that indigenous bank; uniBank, had been taken over by audit firm, KPMG Ghana as the administrator. This was because uniBank was on the verge of collapse at the time.

Again, in May 2018, BoG appointed an adviser to directly supervise operations of Sovereign Bank which the central bank claimed faced governance and capitalization challenges.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.com.gh