The Bank of Ghana has appointed auditing firm KPMG, as official administrators for uniBank Ghana Limited effective March 20, 2018.
A statement from the Bank of Ghana says the appointment “is aimed at saving uniBank from imminent collapse”.
“It will prevent potential losses to depositors and other creditors, and ensure that the financial condition of the bank does not create further risks for the entire financial system”, it added.
The statement explains that KPMG as official administrators will assume control of the bank and all its branches, as well as carry out the responsibilities of the shareholders, directors, and key management personnel of uniBank with immediate effect.
BoG however assured the public that uniBank will remain open for business, allaying fears of liquidation.
“During the period of official administration of uniBank, the bank will remain open for business under the management and control of KPMG overseen by the Bank of Ghana, and it is not being closed and liquidated”, it stated.
Why new administrators.
The Bank of Ghana listed insolvency, breach of cash reserve requirement, failure to comply with BoG‘s directives and poor corporate governance by uniBank among other factors as what necessitated the appointment of KMPG as new administrators.
As administrators, KPMG will act in line with powers under Act 930 to ascertain the state of the bank’s assets and liabilities, and exercise a variety of powers under the Act to rehabilitate and return the bank to regulatory compliance and viability within a period of six months.
At the end of the six month period, uniBank will return to private ownership and management.
The Bank of Ghana cited depositor’s interest as one of the main reasons it did not allow uniBank to continue operating when it failed to comply with the BoG to work out their capital deficiency and liquidity challenges.
“Allowing the continuation of uniBank’s activities in their current form would be detrimental to the interests of depositors and the banking system as a whole. Several attempts by the Bank of Ghana to work together with management and shareholders of the bank to address the capital deficiency and liquidity challenges have failed to achieve the desired outcome, making the continuous reliance on Bank of Ghana for liquidity support unsustainable”.
The BoG further allayed fears that depositors will not lose their money.
“The Bank of Ghana takes this opportunity to reassure customers of uniBank that all deposits they have with uniBank are, and will remain, safe and that they can continue to do business at any of its branches. NO DEPOSITOR OF THE BANK WILL LOSE ANY MONEY”.