Heads of Collapsed Banks could be Prosecuted – BoG hints

The Bank of Ghana (BoG) says persons whose actions led to the collapse of the five indigenous banks could be made to face the full rigors of the law.

According to the Head of Banking Supervision at the Bank of Ghana, Osei Gyasi, the criminal aspect of the breaches perpetrated by the insolvent banks have been established, hence, they will be dealt with in court.

Speaking on Accra-based Citi FM, Mr. Osei Gyasi noted “we have categorically stated that there have been breaches of the law – the banking act – and there has been a breach of Bank of Ghana regulations and rules”.

He added the appropriate decision will be taken when the need arises.

“As to whether these are criminal issues or not, I think it’s for law enforcement agencies and the courts to determine. So going forward I think the appropriate decision will be taken and if there is a need for the law enforcement agencies to come in, they will come in at the appropriate time”, Mr. Osei Gyasi added.

BoG on Wednesday, August 1, 2018, collapsed five banks and merged them into what the BoG called ‘Consolidated Bank Ghana Limited.

According to the Bank of Ghana, the reason for the merger includes liquidity challenges, the inability of the said banks to meet the Ghc400 million minimum Capital requirement, and the fact that some of these banks obtained their licenses under false pretenses and with nonexistent capital.