BoG creates Consolidated Bank Gh. to take over 5 struggling banks

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Bank of Ghana (BoG) has today communicated through the Press that it is creating the Consolidated Bank Gh. Ltd to take over some 5 struggling banks in the country.

These banks are Sovereign Bank, Royal Bank, Beige Capital, Construction Bank and Unibank . This initiative is very necessary because each has run into liquidity challenges.

Government has made 450million cedis available for the Consolidated Bank as starting capital and has named Daniel Addo as its CEO.

At a press conference in Accra, the Governor of the Bank of Ghana Ernest Addison explained the reason behind such development

 

  1. Sovereign Bank obtained their license under false pretence, an act that could attract criminal charges and couple the fact the bank is insolvent.

2. He also said Beige and Construction Bank used  counterfeit and non-existent capital to obtain licenses. The banks therefore obtained licenses                under false pretences.

 

He concluded that , clients can be assured of their smooth transaction starting tomorrow.

Regarding their staff, he said they have been transferred to the Consolidated Bank. “We do not expect any immediate job losses” rightly quoting Ernest Addison

 

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