7 failed banks: Ghana to prosecute officials


Governor, Bank of Ghana, Dr Addison
The Bank of Ghana (BoG) Thursday announced it will prosecute those whose actions led to the collapse of seven indigenous banks in the country.
The bank revoked the licenses of five ailing banks, citing institutional weaknesses and financial impropriety.
In 2017, it also announced the collapse of two banks, bringing the total number to seven.
The banks are UT bank, Construction Bank, Sovereign Bank, Capital Bank, Royal Bank, Beige Bank, Unibank and Capital Bank. They failed to meet the new minimum capital requirement for commercial banks in the country.
The Governor of the BoG, Dr Ernest Addison, while outlining institutional measures to make local banks more resilient, declared that all persons found culpable for the insolvency of the banks would be prosecuted.
BoG issued directives to strengthen corporate governance, risk management and the capital base of banks.
The independent investigation conducted by Boulders Advisors limited in 2017, had blamed the demise of two of the banks to supervisory weaknesses, regulatory breaches, corporate governance failure, insider dealings and accounting and financial improprieties.

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