Pulse.com.gh logo
Go


uniBank Take Over Here are the reasons why BoG took over uniBank

The Governor of the Central Bank said the BoG took the decision to prevent the collapse of uniBank.

  • Published:

On Tuesday, March 20, 2018, the Bank of Ghana announced that it has appointed an administrator, KPMG, to manage indigenous bank uniBank.

 

The Governor of the Central Bank said the BoG took the decision to prevent the collapse of uniBank.

Here are the 10 major reasons why the central bank took over uniBank.

READ ALSO: UniBank takeover was ‘politically motivated’ – UCC lecturer

1. uniBank maintained a capital adequacy ratio (CAR) below zero (currently negative 24%), making it technically insolvent. This is against the 10% minimum CAR required.

2. uniBank persistently suffered liquidity shortfalls and consistently breached its cash reserve requirement. As a result, UniBank relied extensively on liquidity support of over GHS 2.2 billion from the Bank of Ghana over the past two years to meet its recurring liabilities.

3. The indigenous bank conducted its credit administration in a manner that has jeopardized the interests of depositors and the financial sector as a whole.

4. uniBank failed to comply with a directive of the Bank of Ghana dated 26th October 2017, under section 105 of Act 930, prohibiting the bank from granting new loans and incurring new capital expenditures.

5. uniBank failed to comply with several other regulatory requirements, including  Lending to a number of borrowers in excess of its regulatory lending limit (single obligor limit).

READ ALSO: BoG says customers of UniBank will not lose their savings

6. uniBank was borrowing from the inter-bank market without the written approval of the Bank of Ghana when its CAR was less than the prescribed ten percent (10%), in breach of the BoG laws.

7. uniBank was outsourcing a number of services such as those of tellers, receptionists, and security, to affiliated companies without the prior approval by the Bank of Ghana, contrary to BoG Laws.

8. uniBank refused to cooperate with the Bank of Ghana in the performance of its supervisory responsibilities, including deliberately concealing some liabilities from its balance sheet, and failing to submit documents and records for supervisory inspection.

9. uniBank was engaged in poor corporate governance and risk management practices which rendered the bank vulnerable to macroeconomic shocks.

10. uniBank was generally conducting its affairs in a manner detrimental to the interests of depositors and the financial system as a whole.

Do you ever witness news or have a story that should be featured on Pulse Ghana?
Submit your stories, pictures and videos to us now via WhatsApp: +233507713497, Social Media @pulseghana: #PulseEyewitness & DM or Email: eyewitness@pulse.com.gh.

Recommended Articles

Recommended Videos




Top Articles

1 Donor Support World Bank injects $60m into Ghana’s energy, tourism sectorsbullet
2 Menzgold Ghana Don't deposit money with Menzgold – BoG cautions public...bullet
3 Investment banks in Ghana Top 5 investment banks in Ghana and why...bullet
4 Number 12 Panic withdrawals hit savings & loans company following...bullet
5 How to make money online Online jobs; how to make money on...bullet
6 Ponzi schemes in Ghana These investments are Ponzi schemes in...bullet
7 Tax Policy Government not planning to increase VAT, MP...bullet
8 Salaries In 2018 Here are the dates public workers will be...bullet
9 Education Top 5 private high schools in Ghana according...bullet
10 Cost of Fuel IES predicts increase in fuel prices this...bullet

Top Videos

1 Money Alert Meet Africa's richest womanbullet
2 Forbes 2018 Africa's billionaires rich listbullet
3 Dr Joseph Siaw Agyepong Nobody can collapse my company – JOSPONGbullet
4 Plane Crash Starbow suspends operations following plane crashbullet
5 New Discovery Ghana discovers new mineral, lithium in commercial...bullet
6 Support Finance minister buys Kantanka carbullet
7 Tech 6 reasons you should buy an iPhone SE instead of any of...bullet
8 Bozoma Saint John 10 quotes from Uber top official,...bullet

Business