Customers of UMB must not panic over recapitalisation efforts – Joe Jackson

Financial analyst, Joe Jackson has urged customers of Universal Merchant Bank Limited not to panic regarding the Central Bank’s monitoring of the bank’s recapitalisation efforts.

He stressed that customers of UMB must have confidence in the apex bank's role to ensure that the financial institution remains solvent.

Speaking in an interview on Accra-based Citi FM, Joe Jackson who is also the Director of Business Operations at Dalex Finance noted that “the depositors and clients of UMB, this should not scare you. This should give you confidence that the central bank is playing its role and that they are stepping in before things really get bad. And your deposits and your transactions are still safe.”

On March 28, 2024, the Bank of Ghana appointed Dr. Joseph O. France to serve as an advisor to monitor the recapitalization efforts of Universal Merchant Bank Limited effective March 25, 2024.

A statement issued by the Central Bank said the advisor is expected to provide UMB's management with guidance to oversee implementation of governance reforms as agreed by UMB and the Bank of Ghana.

The apex bank said the appointment is in accordance with section 101(1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930).

“The Advisor will be at post at UMB until otherwise advised by the Bank of Ghana and will furnish the Bank of Ghana with a status report on the bank as frequently as the Bank of Ghana may require,” the statement said.

“It is important to note that an Advisor, unlike an Official Administrator, does not take over the powers, responsibilities, and duties of the bank’s shareholders, directors, or management. Under Act 930, the Advisor may attend meetings of the Board of Directors or Committees of the bank without voting at such meetings” it added.

The BoG however assured depositors and customers of UMB that the financial institution remains open for business under the control of UMB’s management team.

MA/EKP

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