NEWSPAPER
The Independent Ghana
29 °c
Accra
  • Home
  • General News
    • News
    • History
    • Features
  • Business
  • Sports
    • Sports
    • FPL
      • Prizes and Rules
  • World
  • Entertainment
    • Showbiz
    • Odd News
    • Lifestyle
  • Independent Africa
    American couple in Uganda to face court over child torture

    American couple in Uganda to face court over child torture

    Over 500 dead due to Cyclone Freddy attack

    Over 500 dead due to Cyclone Freddy attack

    American citizen held captive in Niger for six years has been released

    American citizen held captive in Niger for six years has been released

    Lives of 78m children in danger over water-related crises in Nigeria – UNICEF

    Lives of 78m children in danger over water-related crises in Nigeria – UNICEF

    South Africans demand Ramaphosa’s resignation amid high cost of living

    South Africans demand Ramaphosa’s resignation amid high cost of living

    Dead pastor who could’nt resurrect after 579 days burried

    Dead pastor who could’nt resurrect after 579 days burried

    Lagos remains under the grip of Nigeria’s governing party

    Lagos remains under the grip of Nigeria’s governing party

    Raila’s vehicle destroyed on street protests

    Raila’s vehicle destroyed on street protests

    Protest hits Enugu INEC office

    Protest hits Enugu INEC office

  • Radio
  • Students & Scholarships
No Result
View All Result
  • Home
  • General News
    • News
    • History
    • Features
  • Business
  • Sports
    • Sports
    • FPL
      • Prizes and Rules
  • World
  • Entertainment
    • Showbiz
    • Odd News
    • Lifestyle
  • Independent Africa
    American couple in Uganda to face court over child torture

    American couple in Uganda to face court over child torture

    Over 500 dead due to Cyclone Freddy attack

    Over 500 dead due to Cyclone Freddy attack

    American citizen held captive in Niger for six years has been released

    American citizen held captive in Niger for six years has been released

    Lives of 78m children in danger over water-related crises in Nigeria – UNICEF

    Lives of 78m children in danger over water-related crises in Nigeria – UNICEF

    South Africans demand Ramaphosa’s resignation amid high cost of living

    South Africans demand Ramaphosa’s resignation amid high cost of living

    Dead pastor who could’nt resurrect after 579 days burried

    Dead pastor who could’nt resurrect after 579 days burried

    Lagos remains under the grip of Nigeria’s governing party

    Lagos remains under the grip of Nigeria’s governing party

    Raila’s vehicle destroyed on street protests

    Raila’s vehicle destroyed on street protests

    Protest hits Enugu INEC office

    Protest hits Enugu INEC office

  • Radio
  • Students & Scholarships
No Result
View All Result
The Independent Ghana
No Result
View All Result
Home Business

BoG plans to prosecute executives of failed banks

August 16, 2018
in Business
Share on FacebookShare on Twitter

The Central Bank plans to prosecute executives of failed local lenders suspected of dissipating depositors’ funds and insider dealing, the regulator told Reuters on Tuesday.

The Bank of Ghana on Aug 1 said it had revoked the licences of uniBank and smaller peers Royal Bank, BEIGE Bank, Sovereign Bank and Construction Bank, and had appointed a receiver to manage their assets because they had become insolvent.

Deputy central bank Governor Elsie Awadzi told Reuters the BoG is also considering barring culpable directors from operating in the Ghanaian financial sector.

Read: BoG sets up ethics & internal investigations office

RelatedStories

Taiwan’s President to transit US on Central America trip, without visiting McCarthy

Securing an IMF deal by end of March is impossible – Terkper

Man City’s Haaland to miss Spain and Georgia clash

“We are working very hard on submitting a dossier on each of these banks to the law enforcement agencies … to further investigate criminal behaviour or what could potentially be criminal behaviour and to prosecute,” Awadzi said in an interview in Accra, without naming any of the individuals under investigation.

The regulator has merged the collapsed banks’ assets into a new state-owned lender, Consolidated Bank Ghana, to protect depositors’ money and avoid a financial sector crisis.

Awadzi said the regulator’s primary commitment is to protect depositors’ funds and ensure a smooth transition to the new bank.

“That has gone well so far, and we are going to ensure that integrity is returned to the financial sector by ensuring persons whose conduct contributed to the banks’ failure will not be shielded,” she added.

Read: We can’t prosecute CEOs/MDs of failed banks – BoG

In a report on Unibank – the biggest of the failed lenders and which ranked as the country’s sixth-largest lender by assets before its collapse – the central bank cited shareholders and other affiliates taking for themselves a total of GH¢5.3billion cedis ($1.1bn), representing 75 percent of its total assets.

It said 3.7 billion cedis of the funds taken by shareholders were neither granted through the normal credit delivery process or reported in the bank’s loan books.

Unibank founder Kwabena Duffuor rejected the charges.

“We believe the figures the central bank is putting out are not right,” Duffuor told Reuters. “What they are saying is not true. Besides, we have not seen a copy of the report that was supposedly produced on our bank because they are reluctant to give it to us.”

He said Unibank had written to the central bank complaining that what it had done was wrong.

Risk Management

Awadzi said the five banks – all of which had declined to comment when their licences were revoked on Aug. 1 – had a cumulative deficit of GH¢5.76billion, for which government has issued bonds to enable the new entity Consolidated Bank to finance inherited liabilities.

In addition, government has capitalised Consolidated Bank with 450 million cedis.

Read: Reinforce regulatory mechanism for a safe banking system – GNCCI to BoG

Awadzi said the central bank has authorised the receiver to follow and retrieve assets taken by managers of the defunct banks.

Years of weak risk management, poor corporate governance and non-compliance to professional rules and ethics by officials – including central bank supervisors – also accounted for the banks’ collapse, she said.

Local media reports say state anti-graft body, the Economic and Organised Crime Office (EOCO), has begun questioning some top officials of the defunct banks.

Ratings agency Moody’s welcomed the central bank’s measures to bolster financial stability, but warned that the cost of setting up the new bank would push Ghana’s debt above 70 percent of gross domestic product (GDP) by December, compared with 63.8 percent as of May.

Read: BoG sets ground rules for mergers & acquisitions

Ghana is in its final year of a US$918million deal with the International Monetary Fund to restore fiscal stability, reduce public debt and improve financial sector integrity.

The Bank of Ghana in August last year liquidated two local banks – UT Bank, then listed on the Ghana Stock Exchange, and Capital Bank – as part of measures by government to protect financial stability.

Source: thebftonline.com

Recommended

Taiwan’s President to transit US on Central America trip, without visiting McCarthy

Taiwan’s President to transit US on Central America trip, without visiting McCarthy

March 21, 2023
Securing an IMF deal by end of March is impossible – Terkper

Securing an IMF deal by end of March is impossible – Terkper

March 21, 2023
The Independent Ghana

© 2023 The Independent Ghana

Navigate Site

  • Home
  • About Us
  • Contact Us
  • FPL
  • Privacy Policy
  • Lifestyle
  • Students & Scholarships

Follow Us

No Result
View All Result
  • Home
  • General News
    • Odd News
    • History
    • Features
  • Business
  • Sports
    • FPL
  • World
  • Entertainment
    • Lifestyle
  • Independent Africa
  • About Us
  • Contact Us
  • E-Newspaper
  • Politics
  • Students & Scholarships

© 2023 The Independent Ghana

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist