The manager and board members of collapsed UT and Capital Banks should not be allowed to escape the long hands of the law if found guilty of contributing in any way to the collapse of the banks, a communicator of the New Patriotic Party (NPP) has advocated.
The Central Bank on Monday announced a surprised takeover of Capital Bank Limited and UT Bank by GCB bank, after it revoked their operational licenses as commercial banks.
The central bank attributed its actions to the severe impairment of capital of the two banks, adding that it approved a Purchase and Assumption (P&A) transaction to protect depositors’ funds and strengthen Ghana’s financial sector.
The Bank of Ghana (BoG) also cited that, the allowing the two banks to operate in Ghana’s financial sector poses huge threats to their customers and deposits. Dr Ernest Addison, the Governor of the BoG, at a press conference told the media that, UT Bank and Capital Bank were heavily deficient in capital and liquidity, therefore their continuous operation could jeopardize not only depositors’ funds but also the stability of the Ghana’s financial system.
Speaking on Adom FM’s Morning Show, ‘Dwaso Nsem’ Wednesday, Kwame Baffoe, also known as ‘Abronye DC’ said the managers and board members of the bank must be prosecuted if found guilty of mismanagement.
“The Board and management members must be prosecuted to serve as deterrence to other board and managers of other banks…it is in order because they can’t just be made to escape like that…,” he said.
Kwame Baffoe also called for the publication of the names of all the debtors of the two banks who have defaulted in settling their debt.
“We should publish all the debtors and all who defaulted in the payment of their loans to UT and Capital Banks…they must be named and shamed and their assets confiscated to settle the debts…,” he added.
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