The Bank of Ghana (BoG) has taken remedial measures over the current state of Sovereign Bank by appointing an Advisor to supervise operations of the bank.
The Advisor is expected to directly superintend the day-to-day running of the bank and report back to the Central Bank.
Joy News reports that the action took place around the time that the regulator appointed an administrator to take over the management of UNIBANK earlier this year.
The BoG is reported to have taken the decision after growing unhappy about the current state of the Sovereign bank.
The Bank was incorporated on 9th October 2015 in Accra, before being granted a Universal Banking license by the Bank of Ghana a year later.
However, checks and examinations by the BoG indicate that the Bank has been operating at an unsatisfactory level.
There have been several hearings between the Bank and the Central Bank over the issue, with the latter going as far as serving queries.
The BoG therefore resorted to appointing an Advisor for the Sovereign Bank after supervisory reports indicated a failure on the part of the Bank to comply with its directives.
The appointment of the Advisor has been necessary to avoid the Bank relapsing into other phases that would require stringent remedial measures.
Per the latest development, the Sovereign Bank is expected to comply with the BoG’s order and extend their full co-operation to the Advisor.
The Advisor will also be entitled to attend and fully participate in the meetings of the board of directors of the bank.
The only restriction is that the Advisor shall not be able to vote on a matter for determination by board of the Bank.
In return, the Advisor is expected to furnish the Bank of Ghana with a status report on the bank as frequently as possible and will give recommendations on the next course of action to enhance the operational efficiency of the bank.
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