The Consolidated Bank Ghana Limited is expected to send home about 1700 employees by the end of September 2018.
The 5 banks were recently merged to create a totally new local bank called the Consolidated Bank Ghana Limited.
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The Bank of Ghana revoked the licences of the 5 banks due to liquidity and management challenges.
The merger of the 5 banks comes after the takeover of two other local banks: UT Bank and Capital Bank by GCB Bank in August 2017.
In total, seven local banks collapsed as the Bank of Ghana’s 31 December 2018 deadline for all universal banks to recapitalise from the GHS120 million to GHS400 million draws closer.
In a related development, the Finance Minister Ken Ofori-Atta has explained that the decision to revoke the licences of the 7 banks was taken to save about 50,000 white collar jobs in the financial sector.
The Minister said: “The leadership of the BoG has risen to the challenge. It’s a call to duty as we try to understand that these are difficult moments for all of us and that it requires some courage to take some bold decision.”
He said so far GHS8billion of taxpayers funds had been used to protect the depositors and jobs.