The licence of Heritage Bank Ghana Limited has been revoked by the Bank of Ghana.
Heritage Bank was listed among six banks that failed to meet the new 400 million cedis minimum capital requirement but were going to receive liquidity support.
But in a somewhat surprised move, the central bank Friday revoked the Bank’s licence and approved a purchase and assumption agreement with Consolidated Bank Ghana Limited which was formed in August 2018 with five banks whose licences were revoked.
With the latest development, the Consolidated Bank is required to takeover liabilities and selected assets of the now defunct Heritage Bank.
GN Bank downgraded to Savings and Loans over liquidity issues
Governor of the Bank of Ghana, Dr. Ernest Addison told a news conference Friday that the central bank “have had issues with the capital that was used to set up the bank” but declined to give details stating the issue with the bank is currently a subject of a court case.
“Heritage Bank among other things, obtained its banking licence on 4th October 2016 on the basis of capital with questionable sources. Furthermore the Bank was unable to meet the new minimum capital requirement of 400 cedis as of 31st December 2018,” Dr. Addison explained.
At the expiry of the December 31, 2018 deadline for all commercial banks in the country to recapitalize, only 16 banks had been able to secure the minimum capital of 400 million cedis.