The GCB Bank has acquired UT Bank and Capital Bank following the distress of the two banks, the Bank of Ghana (BoG) has said.
The development is in line Section 123 of the new Banking Act, which states that when a bank is in distress, the Bank of Ghana revokes their license, appoints a receiver and then look for a buyer.
So that is what has happened according to an industry expert who said those two banks are in serious distress.
This means that their licenses have been revoked and they cannot operate again.
Below is a copy of the press release from the BoG
GCB BANK LTD TAKES OVER UT BANK LTD AND CAPITAL BANK LTD
The Bank of Ghana has approved a Purchase and Assumption transaction with GCB Bank Ltd that transfers all deposits and selected assets of UT Bank Ltd and Capital Bank Ltd to GCB Bank Ltd.
The Bank of Ghana has revoked the Licences of UT Bank Ltd and Capital Bank Ltd. This action has become necessary due to severe impairment 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 (PwC).
The main offices and branches of UT Bank and Capital Bank will be under the control of GCB bank and will be opened at 1pm today for normal business transactions.
Customers of UT Bank and Capital Bank are now customers of GCB bank. All deposit customers will continue to have access to their funds. UT Bank and Capital Bank branches and ATMs will continue to operate as normal as GCB bank branches and ATMs. All staff in the interim will become staff of GCB bank and GCB Bank will negotiate the terms of their contract.
GCB was selected amongst 3 others on the basis of purchase price, cost of funding, branches to be retained, staff to be employed and impact on the acquiring bank’s capital adequacy ratio.
The Bank of Ghana assures the public that all customers can continue normal banking business at all UT Bank and Capital Bank facilities which are now branches of GCB bank.
The approval by the Bank of Ghana of this transaction is to strengthen Ghana’s banking sector, ensure financial stability and protect depositors’ funds.
The Bank of Ghana reassures customers of UT Bank and Capital Bank that their money is safe and they can continue to do business at their respective branches which are now the branches of GCB Bank.
For further information stakeholders are advised to reach GCB through its website www.gcbbank.com.gh and on the following lines:
0501607001
0556615817
0501607002
0556615823
0501607003
0556615819
Source: Peacefmonline.com
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when you cheat your fellow human being to succeed,this is what you see at the end of the tunnel.GOD never sleeps you know? ut bank was seizing peoples cars,properties and charging innocent people high interest rates,have you seen your end? as for otabil and all the criminal ocultic pastors around the world who are stealing from innocent people by using the name of GOD ALMIGHTY and the bible wrongly shall face the wrath of GOD before they die and this is the beginning.
Ooo! I'm saddened by this news. I feel so bad for Mr. Kofi Amoabeng. I hope he bounces back.
@ George and @ Ndoum. IS IT RIGHT THAT MENSAH OTABIL IS ON THE BOARD OF CAPITAL BANK OR UT BANK? I TRIED TO ACCESS THEIR WEBSITE BUT IT IS DOWN. IF THIS INFORMATION IS CORRECT THEN THIS PREACHER MAN HAS FALLEN BELOW THE LEVEL OF MORALITY THAT HE IS SUPPOSED TO PROPAGATE. EVERYONE SHOULD HENCEFORTH SEE WHY THESE PEOPLE AFFILIATE THEMSELVES WITH POLITICAL PARTIES. FOLKS STOP MAKING YOURSELVES ***barred word*** BY POURING MONEY INTO THEIR COFFERS. I RESERVE MY COMMENTS TILL I AM ABLE TO VERIFY IF THE CLAIM IS CORRECT.
The regulator should go behind to investigate those who gave out funny loans and turned round to lick the cash so consistently that Capital Bank went on its knees. People are hiding behind God to rob the system. Who is going to pay the huge debt created by smart folks at Capital Bank. The main cause of the collapse has been appointed the MD of ADB now, pls BOG open your eyes oooo. We have looters on the prowl ooooo
God forgive me but i said it. The way UT Bank entered the banking system, it was questionable. He caused lots of pain to people. High interest on small loans. ceasing peoples properties. Now you see. Beige capital should get ready. You don't steal from the poor person and go free
EIIII SO WHAT HAPPENS TO MY MONEY AT UT BANK? AM I STILL GOING TO USE MY UT CHEGUE BOOK OR GHANA COM. BANK ASEM.
Im just hearing Pastor Mensah Otabil was board chairman of Capital Bank. I wonder why he didnt pray to his God to save the bank. Or sow a seen on behalf of his bank to turn the fortunes of his bank around. Serves that bank right, appointing a man who has no economics background, never achieved higher learning by going to a university, who's acclaimed to wealth is brainwashing gullible church members to dole out large sums of money under the guise of supporting Gods work but ends in his bank account. A bank is not a church Capital bank, God will not save your ***barred word*** if you appoint a man who has no competence in banking and economics. You pick a theologian to do the job of an economic guru. Classic case of a very very square peg in a round hole. But this makes me happy, for once Otabil knows the struggle ordinary people go through, trying to grow a business and sustaining it as opposed to what he does, open an old book, read from it, give his interpretations of it and cash starts pouring in. Incompetent man and i can bet you, but for his church he would have been a big failure in life. Take the case of Kofi Amoabeng, he was not imposed on the bank because he was a preacher. UT is his baby, he grew it from scratch to a big project and now it is going through difficulties, now the man has to put his life together, plan and strategize a come back in the world of business. Otabil still has his cash cow...his church. He does not have to think, just keep brainwashing his church members and money will keep pouring in. Pastors are ***barred word***, armed robbers even. In their case they use the Bible instead of guns.
DR Mensa Otabil again? chairman of a collapsing bank.