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Business News Tue, 15 Aug 2017

Shareholders must invest more in their banks – Dr Adu Antwi

Former Director General of the Security and Exchanges Commission, Dr Adu Antwi, has asked all shareholders in the banking sector to inject more capital into the operations of their banks in order to prevent them from folding up.

According to him, one of the roles of shareholders is to ensure that the banks are oiled with cash, especially in difficult times. To that end, shareholders in Ghana must work to meet this requirement.

His comments follow the takeover of UT Bank Ltd and Capital Bank Ltd by GCB Bank as the two banks were struggling to operate financially.

A statement issued by the Bank of Ghana on Monday, August 14 said: “The Bank of Ghana has approved a Purchase and Assumption transaction with GCB Bank Limited that transfers of all deposits and selected assets of UT Bank Ltd and Capital Bank Ltd to GCB Bank Ltd. The Bank of Ghana has revoked the licenses of UT Bank Ltd and Capital Bank Ltd. "



This action has become necessary due to severe impalement of their capital. The remaining assets and liabilities will be realised and settled respectively through a receivership process to be undertaken by Messers Vish Ashiagbor and Eric Nana Nipah of PricewaterhouseCoopers.

“The main offices and braches of UT Bank and Capital Bank will be under the control of GCB Bank and will be opened at 1 PM today for normal business transactions.”

Speaking on this development in an interview with Chief Jerry Forson, host of Ghana Yensom on Accra 100.5FM on Tuesday August 15, Dr Anwti said: “ In order to prevent some of these things from happening to other banks, the shareholders must ensure that the banks have enough money at all times to operate.

“That is the role of a shareholder and so the shareholders of other banks must draw lessons from this development with the UT bank and the Capital bank to invest more money in their banks.”

Source: Class FM
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