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Unibank Was Beyond Rehabilitation - BoG   
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The Bank of Ghana (BoG) has explained that an Asset Quality Review (AQR) of uniBank Ghana Limited revealed some unscrupulous activities of the shareholders.

According the BoG, shareholders, related and connected parties had taken amounts totaling GH¢3.7 billion which were neither granted through the normal credit delivery process nor reported as part of the bank’s loan portfolio.

In addition, amounts totaling GH¢1.6 billion had been granted to shareholders, related and connected parties in the form of loans and advances without due process and in breach of relevant provisions of Act 930.

The BoG in the press statement explaining the revocation of the license of uniBank said the bank was identified during the AQR update in 2016 exercise to be significantly undercapitalized.

The BoG explained that even though uniBank submitted a capital restoration plan, the plan however, yielded no success in returning the bank to solvency and compliance with prudential requirements.

It added that the Official Administrator appointed for uniBank in March 2018 also found that the bank was beyond rehabilitation.

The BoG said efforts by these banks to extricate themselves from financial difficulty have not borne fruit. The situation has rather worsened for these banks.
Source: Graphic.com

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