Heritage, Premium Bank Merged With Consolidated Bank

The Bank of Ghana (BoG) has revoked the license of Heritage Bank Ghana Limited and Premium Bank Limited for breaching sections of the Banks and Specialised Deposit Taking Institutions Act.

Premium bank together with Heritage Bank which has been collapsed by the BoG, on the other hand government has issued a GHc1.4bn bond to cover the gap.

The central bank has also approved a purchase and assumption agreement with Consolidated Bank Ghana Limited to takeover the liabilities and selected assets of the now defunct two banks – Heritage and Premium.

The BoG Governor, Dr. Ernest Addison announced the action at a press conference Friday evening.

According to the Governor, Premium Bank was found t be insolvent and had a capital adequacy ratio of “-125.2%.”

With regard to Heritage bank, the Governor said it “obtained its license with questionable sources of capital, adding that both banks have not also been able “to meet the minimum capital requirement.”

Ghana currently has 23 banks after the recapitalization drive.