5 Collapsed Banks: Be ready for job losses - John Boadu envisages

The announcement of the collapse of Beige Bank, Royal, Unibank, Construction and Sovereign Banks by the Bank of Ghana (BoG) leading to the emergence of Consolidated Bank will definitely bring about job losses contrary to explanations from officials of the Central Bank.

“All the five Managing Directors including their wives and Board Members are going to live without jobs”, General Secretary of the ruling New Patriotic Party (NDC), Mr. John Boadu observed.

According to him, though it was a painful decision for the government to take but necessary since customers of these banks monies needed to be protected from the few who are going to lose their jobs.

“It was a painful decision though the government had to be taken to ensure monies belonging to customers of the banks are safe”, the NPP General Secretary revealed during panel discussion monitored by MyNewsGh.com on Peace FM

Mr. John Boadu, therefore, advised political actors not to read political meanings into the governments since it was done to benefit the larger people.



Background

The Bank of Ghana (BoG) this week merged five banks into a Consolidated Bank of Ghana Limited.

The banks are BEIGE, Sovereign, Construction, UniBank and Royal Bank.

It follows the insolvency of the five banks after investigations by Bank of Ghana (BoG).

Consolidated Bank Ghana Limited is expected to help the government in economic development.

The government has also issued a bond totaling GHc5.6 billion to cater for bad assets of the four banks, Dr Addison said.

Explaining, the Governor said Unibank and Royal Bank were under capitalised and that those banks were beyond rehabilitation.

On Royal Bank, he said non-performing loans were high whilst Sovereign Bank obtained its license by false pretences through the use of suspicious and non-existent capital.

Dr Addison said the consolidated banks will be headed by Mr. Nii Amanor Dodoo of KPMG as the Receiver for the five banks.