A Member of Parliament’s Finance Committee has blamed the Central Bank for the collapse of two indigenous banks, UT and Capital Banks.
Isaac Adongo said the two banks could have been saved from going bust if Bank of Ghana had been effective in the discharge of its work.
Speaking to Emefa Apawu on Joy FM’s Top Story Friday, the lawmaker said there are visible issues affecting the banking sector but the Central Bank is not proactive to addressing them.
"There are very serious questions to do with the vulnerability of our banking system and financial market and bank of ghana is not demonstrating the foresight to deal with that," he said forcefully.
The walls of the banking sector shook Monday, after two leading indigenous banks, UT and Capital Banks were bought by GCB Bank.
Bank of Ghana, the banking regulator, approved the transaction, saying the two banks are financially distressed to exist as autonomous institutions.
The two banks have a network strength of 53 branches, with over 900 employees across the country.
The accounts of all directors and senior management members of the two banks have been frozen to aid with investigations into the collapse, the Central Bank has said. Although he lauded Bank of Ghana for the swift manner it handled the sale of the two banks, Mr Adongo said the situation was avoidable if the right thing has been done in the beginning.
He said there are many unanswered questions regarding the sale of UT and Capital Banks to the largest indigenous bank, GCB Bank.
“What is the extent of impairment of the two banks? What is the level of assets taken over by GCB Bank?” he asked, adding there are many banks that do not have a working board but no action has been taken on it.
Mr Adongo said GCB Bank, Universal Merchant Bank and ADB Bank do not have boards, yet they have been allowed to transact business without proper approval as required by the law.
This situation, the lawmaker said will affect the banking sector if Bank of Ghana does not agitate for the formation of the various boards.
Source: myjoyonline.com
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These banks were in comma and on life support for over 2 years under the nose of the incompetent John Ford Mahama and his ***barred word***.ish finance minister. They did nothing about it.....
The bank of Ghana is a foreign bank like Barclay's. If you don't know, try to find out how much the people of this country made from BOG, and the answer is nothing. We are in deeeeep colonial times! The BOG, just like the central bank of America is a Rothschild bank, and no one forks with them.
will someone get the CV of this MP for me?
What a face. That's a real man. A man must be ug.ly and fearful and Adongo passed the man-test.
What was the incompetent board of directors of the Bank of Ghana John Mahama appointed doing? They were sleeping on the job only interested in their fat allowances.......
But these events happened during NDC government era. The BoG governors at the times were NDC appointees. What was the finance minister, Terkper and Mahama doing when they saw that BoG was not doing its job? NDC, your members and your MPs are very very very BIG EDDDIOTTS!!!
The most unintelligent people I have come across are NDC folks.They speak on issues without knowing what they are speaking about. According to the BOG,these banks were on their way to insolvency now ample time was given to them to make things right but all effort failed. You want Ghanaians to lose their deposits and investment fuuullllish.Anytime NDC is in power fraud financial institutions comes up to dupe Ghanaians.Pyram,dkm,Juster motors,Onwald etc.You connive with all these financial institutions to dupe Ghanaians shameful,wicked,fuuuullish and unintelligent party .Learn from the npp OK.you almost collapsed all social interventions.No money was paid into the Getfund,NHIS in heavy debt,capitation, theeeevery,corruption.Aahh bunch of wicked people.No wonder your own founder is against you