General News Wed, 4 Aug 2021

Future NDC government will collapse Consolidated Bank – Captain Smart

•The Consolidated Bank Ghana was formed in 2018 to takeover some struggling banks

•Captain Smart says the bank will collapse if NDC returns to power

•He says the banks will disintegrate and go back to their independent status

Godsbrain Captain Smart, the host of Onua TV’s morning show believes that the state-owned Consolidated Bank will be collapsed if the New Patriotic Party exits the political scene.

According to him, a National Democratic Congress government will cause the collapse of the bank as the party has always held that the processes leading to the consolidation of the banks were wrong and when given the chance to run the country, it will revisit that issue.

Captain Smart foresee Royal Bank being separated from the Consolidated Bank Ghana while GN Bank will be able to stand on its own if it wins all cases pending before the courts.

“CBG is a political bank. Any government that comes will collapse that bank. Mark it somewhere. Any government that comes will collapse that bank. I’m not a prophet of doom but that’s what will happen.

“I’m not praying for the return of the National Democratic Congress but in the event that they return, Royal Bank will get its license and leave CBG. Heritage Bank will get its license. Kwabena Duffuor is already out and Nduom is almost out. So if all these banks quit and take back their customers and file for judgement debt like Nduom is doing, what will be the stand of CBG? All we needed to fix the banking sector was $5.9billion. So far we have spent over $16.9 billion” he said.

The Consolidated Bank Ghana was established in 2018 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 hence the decision by the government to consolidate them.

Isaac Adongo, a member of the Finance Committee of Parliament spoke out against the establishment of the bank, questioning the discipline in making such a move.

“To be very honest, Consolidated Bank Ghana is all that is wrong with the banking sector in Ghana. It is a very bad example of banking in Ghana. If you have a bank with total assets of GHS 8 billion but its loan portfolio is about GHS 34 million is that a bank?

“If you look at the statement of affairs of CBG, it tells you that the banks that were all taken over selected some assets and liabilities and put them together and then issued a bond to cover the gap. That statement of affairs points to depositor funds of GHS 5.6 million. If they say 95 percent of depositors have been paid, you realize that the money is still sitting at CBG. CBG was given bonds and they can’t pay,” he said
Source: www.ghanaweb.com
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