BoG Finalizing Report on UT, Capital Banks Collapse

The Bank of Ghana (BoG) has stated that it is finalizing a report that will explain the causes of the collapse of UT Bank and Capital Bank.

The central bank closed down UT Bank and Capital Bank in August last year to protect the banking system from collapsing due to the distress nature of the two banks.

The BoG at the time assured that it will come out with comprehensive reasons for the collapse to guide banks in the future.

But seven months after the assurance, the central bank is yet to make public its findings.

Speaking on the Citi Breakfast Show, the Second Deputy Governor of the Bank of Ghana Mrs. Elsie Awadzie assured that the report will soon be made public.

She explained that the circumstances surrounding the UT Bank and the Capital Bank are quite different from the challenges faced by uniBank which required rehabilitation.

“In the case of UT Bank and Capital Bank we were winding up those banks and the first order of business was to immediately lay hands on assets to be able to recover value and take them back,” she said.

“The management of the Bank of Ghana stands by its word to complete the investigation. We will definitely get all other institutions involved in following up the result of the investigation and there is no doubt about our commitment to that,” she added.

Mrs. Awadzie pointed out that “The last phase of the BoG’s action would involve a thorough investigation of operations of UT Bank and Capital Bank”

She disclosed that the central bank will take appropriate actions against Directors and key management personnel of the defunct banks in if found culpable.