Central Bank records ¢1.6 billion loss

Central Bank records ¢1.6 billion loss

- Bank of Ghana (BoG) has recorded a loss of ¢1.64 billion in 2017 having registered a profit before tax of ¢709.5million

- The central bank's 2017 Annual Report reveals that this impairment is as a result of the BoG’s liquidity support to collapsed UT and Capital banks

The Bank of Ghana (BoG) recorded a loss of ¢1.64 billion in 2017 due to challenges in the financial sector.

This was despite registering a profit of ¢709.5million before tax in the last one year.

The cause of this huge loss could partially be attributed to the Central Bank’s exposure to the collapsed UT and Capital banks, and that of other institutions such as uniBank, currently under the administration of KPMG, an auditing firm.

Central Bank records ¢1.6 billion loss

Governor of the Central Bank, Dr Ernest Yedu Addison. Source:BFT

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The 2017 Annual Report of the bank indicates that it recorded an impairment position of ¢404 million in 2016 but that jumped by 208.49 percent to ¢1.3billion in 2017.

Although the bank’s total assets increased from ¢49.74billion in 2016 to ¢55.2 billion in 2017, there was a recorded drop in its loans and advances.

Further analysis indicate that the BoG’s loans and advances dropped by 14 percent from ¢7.6 billion in 2016 to ¢6.5 billion due to a reduction in its exposure to the banking industry.

Also, due to the Central Bank’s liquidity support to the UT and Capital banks, government had to issue a ¢2.1 billion bond to support the GCB Bank in its quest to safely take over the two banks.

Earlier in March, the BoG also revealed that it had also extended ¢2.2 billion to uniBank in liquidity support.

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Meanwhile, some key personnel who presided over the collapse of UT and Capital banks are currently being investigated by the Economic and Organised Crime Organisation (EOCO) over their various roles.

According to Governor of the central bank, Dr. Ernest Addison, no staff will be shielded if found to have engage in any untoward actions which cost the bank.

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Source: Yen.com.gh

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