uniBank takeover 'worrying' – Kofi Amoabeng

The president of UT Holdings, Prince Kofi Amoabeng, has described the Bank of Ghana takeover of indigenous Ghanaian outfit uniBank as “worrying.”

Mr. Amoabeng, whose bank UT Bank and one other, Capital Bank, were bequeathed to GCB Bank due to insolvency, believes the Central Bank, as a regulator, could have weighed other options in the case of uniBank.

The Central Bank has handed over managerial powers of uniBank to KPMG, at least for the next six months, because the bank’s “capital adequacy ratio (CAR) has fallen below 50% of the required minimum of 10% (i.e. below 5%).”

“Under section 108 of Act 930, the Official Administrator is authorized to exercise a variety of powers to rehabilitate and return the bank to regulatory compliance within a period of six months, at the end of which the bank will be returned to private ownership and management,” a statement from the BoG said.

“The appointment by the Bank of Ghana of the official administrator is aimed at saving uniBank from imminent collapse. It will prevent potential losses to depositors and other creditors, and ensure that the financial condition of the bank does not create further risks for the entire financial system,” it added.

Speaking to Accra-based Joy FM on the issue, Mr. Amoabeng said: “I think it’s a bit worrying with uniBank coming on the heels of UT and Capital Bank. I believe it can be sorted out. I think it’s better sometimes to take positive action and air things out and solve it than keep things under the rug.”

The BoG has assured customers of uniBank that their deposits are safe and the bank is operating as normal.