BoG recovers ¢849m so far from defunct banks

BoG recovers ¢849m so far from defunct banks

The Bank of Ghana (BoG) has revealed that about ¢849 million has been recovered from the assets of the banks who lost their licences to operate.

Speaking at the Ghana Association of Bankers’ 17th Working Luncheon in Accra, BoG Governor, Dr Ernest Addison, said ¢849 million has been realized from the assets of all the defunct banks.

According to him, the amount is from the ¢10 billion that the Receivers took over from these institutions.

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He explained that the monies were recovered from loan repayments by customers and placements repaid.

Also, he said, some of the monies were secured from the refund of commissions paid and proceeds from the sale of vehicles and bonds.

The Bank of Ghana will continue to work with the Receiver to ensure that bottlenecks in the receivership process cleared for the orderly winding down of the defunct banks,” Dr Addison said.

He was, however, quick to add that there is a lot more work to be done by “government, the Chief Justice and Security Agencies to work steadily to recover certain assets from shareholders, directors and loan defaulters of the erstwhile defunct banks.”

Seven indigenous banks have seen their licenses revoked by the Central Bank over the last two and half years over their insolvency.

The move was part of a banking sector clean-up, which has since seen may other financial institutions closed down.

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First the UT and Capital Banks were consolidated after the Central Bank deemed both institutions insolvent.

Then five more banks – Beige Bank, Sovereign Bank, Royal Bank, Construction Bank and UniBank – were also dissolved to form the Consolidated Bank of Ghana.

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Source: Yen Ghana

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