Construction Bank Fold-up: 'Customers' deposits safe'

Wed, 1 Aug 2018 Source: classfmonline.como

Financial Analyst and CEO of Dusk Capital, Bernard Osei-Tutu, has said customers of Construction Bank will not be adversely affected as the bank prepares to fold up.

Construction Bank is folding up because of some challenges in meeting the Bank of Ghana’s new capital requirement of GHS400 million by the close of this year.

Mr Osei-Tutu said the fold-up has nothing to do with liquidity challenges, but purely a decision by the shareholders.

Speaking in an interview with Class Business’ Pious Kojo Backah, Mr Osei-Tutu said the development would not have any impact on customers.

“I think the good news is that this is not an issue that has to do with liquidity challenge but purely a shareholders decision resulting in a regulatory action, so, the dynamics are quite different, I don’t think these are dynamics that will affect stakeholders, that is, the customers.

“This is fairly a new bank; Construction Bank has been around for barely a year or so, and, so, obviously, they won’t have a lot of liabilities on their head. It becomes easier to go through the process with the regulator to do that folding exercise and I can assure that customers who have done some bit of deposit with them will have their monies back because this is clearly not a liquidity issue, all they are saying is that they’ve thrown in the towel, they can’t fight any more, they are parking out and at this point, you just have to do your homework well, and with the help of the regulator, have a feasible phase out and customers will not be affected.”

Source: classfmonline.como

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