We’ll protect your deposits – BoG assures Ghanaians

The Bank of Ghana (BoG) has said it will continue to institute measures to ensure a safe banking sector in the country. According to Dr Benjamin Amoah, Head of Research at the BoG, it is incumbent on the central bank to ensure that customers’ deposits are safe, by strictly enforcing the regulations in the banking sector.

The BoG, on Wednesday, 1 August 2018, announced the merger of five banks into The Consolidated Bank Ghana Limited, since they cannot meet the minimum capital requirement of GHS400 million by the end of the 31 December 2018 deadline.

The newly-established Consolidated Bank is fully owned by the Government of Ghana, with a start-up capital of GHS450 million. The banks that have been merged are The Royal Bank, The BIEGE bank, Sovereign Bank, The Construction Bank and uniBank.

According to the BoG, The BEIGE, Sovereign and the Construction banks obtained their banking licences under false pretences through the use of suspicious and non-existent capital, whereas The Royal Bank had non-performing loans which constitute 78.9 per cent and uniBank had a capital deficit of GHS7.4 billion compared to the regulatory minimum of GHS400 million.

Additionally, the Central Bank said the government has committed to further explore policy interventions needed to make the entire financial system more robust, for the benefit of the Ghanaian economy.

The Bank of Ghana assured that it remains committed to supporting the orderly development of Ghana’s banking sector, including indigenous Ghanaian banks, while promoting a strong and resilient sector to drive Ghana’s economic growth.

BoG further guarantees it will take steps to ensure that all relevant parties whose actions contributed to the failure of the five banks are held accountable through administrative, civil, and criminal actions as appropriate.