Central Bank backed for blocking mgt accounts of UT, Capital banks

The Central Bank did not breach any rules, says a former principal of the National Banking College

The Bank of Ghana did not breach any banking rules for blocking the accounts of top management members of UT Bank and Capital Banks, the former principal of the national Banking College has said.

Philip Buabeng added, however, that the move should have been done by GCB Bank, the bank tasked to take over the running of the two banks.

He was speaking in an interview on 3FM over media reports that the Bank of Ghana on Friday blocked the accounts of some top management members of UT Bank and Capital Bank in order to conduct investigations into their accounts.

Though the accounts were unblocked after 24 hours, critics say this was a breach of some banking regulations.

But Mr Buabeng says the Central Bank has the power to do so.

“The Bank of Ghana as the regulator has the power to do so,” he maintained.

“Because the two banks now belong to GCB Bank, it is only them that can freeze or block anybody’s account. It is part of the Purchasing and Assumption agreement”.

Meanwhile, the head of Banking Supervision at the Bank of Ghana, Raymond Amanfu, says the Central Bank will continue with investigations into the matter.

“We will still continue with investigation. We either do selective tendering or sole investigations. We will engage the appropriate agencies and the investigation will continue.”


The Central Bank has earlier indicated that it will punish perpetrators whose actions led to the collapse of the two banks.

This has been welcomed by major stakeholders including the bankers association and the institute of directors.

Some experts have also argued that the Central Bank should also be blamed for the current state of the banks, because it could not perform its regulatory role well.

By Grace Asare|3FM||Ghana

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