The Bank of Ghana has served notice that it will thorough investigate operations of UT Bank and Capital Bank and take appropriate action against shareholders, Directors, and key Management personnel who are found to be culpable for the undercapitalization of the two banks.

On Monday, the Bank of Ghana announced the complete takeover of UT Bank Limited and Capital Bank Limited by the GCB Bank Limited after revoking the licences of the two commercial banks.

The central bank attributed its actions to the severe impairment of the capital of the two banks, adding that it approved a Purchase and Assumption (P&A) transaction involving the banks to protect depositors’ funds and strengthen Ghana’s financial sector.

Addressing a press conference in Accra, the Governor of the Bank of Ghana, Dr Ernest Addison emphasized that no depositor will lose his or her funds and all depositors can continue to do normal banking business with GCB Bank.

He said under the Purchase and Assumption (P&A) transaction, GCB Bank will acquire all deposits and some selected assets of UT Bank and Capital Bank. The premises of UT Bank and Capital Bank, Dr Addison added will now be rebranded as branches of GCB Bank with all customers continuing normal banking business at these branches.

“UT Bank and Capital Bank were heavily deficient in capital and liquidity and their continuous operation could have jeopardized not only their depositors’ funds but also posed a threat to the stability of the financial system. It, therefore, became necessary for the Bank of Ghana to revoke their licenses and approve a Purchase and Assumption (P&A) transaction to allow GCB Bank, a large bank with the right balance sheet, to take over all deposits and selected assets of UT Bank and Capital Bank.”