BoG Creates Consolidated Bank to Take Over 5 Struggling Banks

The Bank of Ghana (BoG) has announced it is creating the Consolidated Bank Gh. Ltd to take over some struggling banks in the country.

Sovereign Bank, Royal Bank, Beige Capital, Construction Bank and Unibank are five financial institutions that have run into liquidity challenges.

Government has made 450m cedis available for the Consolidated Bank as starting capital and has named Daniel Addo as its CEO.

At a press conference in Accra, the Governor of the Bank of Ghana Ernest Addison explained the Sovereign Bank obtained their license under false pretence, an act that could attract criminal charges.

The bank, he said, is insolvent.

He also said Beige and Construction Bank used fictitious and non-existent capital to obtain licenses. The banks therefore obtained licenses under false pretenses.

The governor assured clients of the affected banks their deposits are safe. It has also transferred their staff to the Consolidated Bank.

“We do not expect any immediate job losses” he said.

Expect more…

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