Bank of Ghana merge five local banks which dey struggle into Consolidated Bank
Bank of Ghana (BoG) shut down five banks shut den collect dema license den merge dem into one, Consolidated Bank after dem discover say these banks dey struggle.
Di Banks wey dey be Beige Bank, Construction bank, Royal bank, uniBank den Sovereign bank. According to the Governor of the Bank of Ghana, Dr. Ernest Addison, "government put capital inside consolidated Bank Ghana Limited so say dem fit handle di liabilities of all di five banks. Sake of that government issue bond of GHc5.76 billion make dem take cover liability den assets of Consolidated Bank." Reasons why BoG shut down di banks BoG shut down these banks dem merge dem into Consolidated Bank for different reasons, here be each bank dem dema reason. UniBank Ghana lose dema license sake of dema Capital Adequacy Ratio (CAR) fall below 50% of di required minimum of 10%. Also BoG discover say dema shareholders, related den connected parties of uniBank remove monies to di tune of GH¢5.3 billion from di bank, dis dey constitute 75 percent of dema total assets. Mike Nyinaku be founder of di BEIGE Group, en bank be one of di five affected by BoG merger The Royal Bank according to Bog be guilty of some irregularities. Dema non-performing loans be 78.9 percent of total loans granted, dis be sake of poor credit risk den liquidity risk management controls. Sovereign Bank who get licence to operate as universal bank in January 2016 obtained by false pretences through the use of suspicious and non-existent capital Beige Bank den Construction Bank both bet dema provisional licences in 2016 den start work in 2017, but investigations by BoG reveal say dem obtained demma banking licences under false pretences. Dem use suspicious den non-existent capital, which resulted in situation where dema reported capital be inaccessible to them for dema own operations. Depositors money be safe? Bank of Ghana assure di general public say contrary to reports that people go fit lose dema monies, dem want make customers of all five banks know say dema money be safe. Some banks already start send messages give dema customers on di latest merger den also assure customers say of dema monies be safe.