According to him, the two banks had been struggling over the years, therefore it was necessary that the Central Bank, the Bank of Ghana, stepped in swiftly to rescue depositors.
GCB has taken over UT Bank Ltd and Capital Bank Ltd as the two banks were struggling to operate financially.
A statement issued by the Bank of Ghana on Monday August 14 said: “The Bank of Ghana has approved a Purchase and Assumption transaction with GCB Bank Limited that transfers all deposits and selected assets of UT Bank Ltd and Capital Bank Ltd to GCB Bank Ltd. The Bank of Ghana has revoked the licenses of UT Bank Ltd and Capital Bank Ltd. This action has become necessary due to severe impalement of their capital. The remaining assets and liabilities will be realised and settled respectively through a receivership process to be undertaken by Messers Vish Ashiagbor and Eric Nana Nipah of PricewaterhouseCoopers.
“The main offices and braches of UT Bank and Capital Bank will be under the control of GCB Bank and will be opened at 1 PM today for normal business transactions.”
Speaking on this development in an interview with Chief Jerry Forson, host of the Ghana Yensom programme on Accra 100.5FM, on Tuesday August 15, he stated that: “This is not surprising because we all knew the two banks were struggling. Anybody who was close to the banking sector knew this and so we are all not surprised.
“We commend the Bank of Ghana for the swift manner in which they moved in to save the bank and the customers, the problems of these banks started over a year now and so the takeover was right.”