UT, Capital banks collapse: GCB shuts down 31 branches

GCB Bank has shut down 31 branches of the defunct UT and Capital Banks after it successfully completed the full integration of the systems of the two collapsed banks to offer customers a wide network of some 183 branches across the country.

The integration, according to the management of the GCB in a statement, included the consolidation of core banking applications, procedures and processes, the training of staff and the streamlining of the branch network.

Thus “GCB has retained 22 out of the 53 branches of the defunct institutions based on their location and accessibility to customers,” said the statement.

As a result of the integration, continued the statement “staff numbers have been rationalized and GCB has absorbed almost 70 percent of the permanent staff of those banks. Contract staff services, which are no longer required have been dispensed with.”

It added, “Departing employees are to be paid a month’s salary in lieu of notice plus any earned leave since August last year.”

The Bank of Ghana last year approved the takeover of Capital Bank and UT Bank by the GCB Bank Ltd after it revoked their licences. The BoG explained that the action became necessary due to “severe impairment of their capital.”

GCB was selected amongst three others on the basis of purchase vice, cost of funding, branches to be retained, staff to be employed and impact on the acquiring bank’s capital adequacy ratio.