BoG establishes Consolidated Bank for 5 distressed banks

The Bank of Ghana has established Consolidated Bank Ghana Limited to take over the assets of five banks said to have been plunged into a liquidity crunch. The banks are Beige Bank, Construction Bank, The Royal Bank, Sovereign Bank and uniBank. Addressing journalists in Accra on Wednesday, Governor of the Bank of Ghana Dr Ernest Addison said his outfit is dedicating GH¢450 million as minimum capital for the new bank ahead of the GH¢400 million requirement at the end of the year for all banks. “It takes away the uncertainty and anxiety we have seen in the market,” Dr Addison said. Daniel Addo has been appointed to serve as the Chief Executive Officer of the new bank, which will operate from Airport City. Simon Dornoo has also been appointed as Consolidated Bank director in charge of uniBank, Alex Dodoo will be in charge of Royal Bank, Kesewa Brown will be in charge of Construction Bank and BabatundeAmpah will be in charge of Beige Bank. Boulders Advisers Limited led by Reggie France has also been appointed as Advisor to the new bank. KPMG’s Nii Amanor Dodoo has been appointed by the Central Bank as the receiver of the five banks to take control and possession of their assets and liabilities. Dr Addison, however, pointed out that there are no toxic liabilities to be taken over as only the good assets and liabilities have been transferred to the new bank, which will be fully capitalised by government. Out of the five banks, editors.3news.com gathered, UniBank, Royal Bank and Beige Bank were heavily insolvent as their liabilities exceeded their assets. Sovereign Bank and Construction Bank, on the other hand, obtained their licenses by false pretences, according to Dr Addison. They are said to have used suspicious and non-existent capital, which has made it impossible for them to have liquid to operate. Anxiety among customers of these five banks has been allayed as the Central Bank Governor assured that all the branches of the banks will be open for business but as Consolidated Bank of Ghana. “All deposits of the five banks are safe,” he said, “and have been transferred to the Consolidated Bank.” He added: “Customers can carry out their businesses as usual at their respective banks which will now become branches of the Consolidated Bank.” The new indigenous bank will operate with a universal banking license granted by the Bank of Ghana. Source: editors.3news.com|Ghana Follow @3Newsgh