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General News of Thursday, 17 August 2017

Source: www.ghanaweb.com

Congratulate UT, Capital Bank Bosses, don’t cry for them - Consultant

Whilst many have descended on founders of UT and Capital Banks following the BoG’s announcement indicating a withdrawal of their licenses, a Strategy Development Consultant, Nelson Semanu Kokor has commended originators of both banks and urged Ghanaians to draw inspiration from their experiences.

“This development is a success story! I am personally inspired by these two institutions! I don’t know about you!”, he said.

According to him, UT Boss, Mr. Joseph Kofi Amoabeng and Capital Bank Boss, Mr. William Ato Essien, have both paid their dues by establishing banks which though are facing challenges have provided an additional avenue for another company, the Ghana Commercial Bank (GCB) to benefit from.

In a facebook post, Mr. Semanu Kokor maintained that the fact that both founders built their companies on entrepreneurial grounds is a huge achievement which should be lauded. He explained, that the foundation on which they established the business has created bigger banking opportunities for GCB.

“UT Bank and Capital Bank in my estimation are amazing success stories! Why do I say so? To build a company from scratch and for a larger firm to have an interest in acquiring makes it [though facing some liquidity challenges] a HUGE SUCCESS story. This is great news! Whichever way you look at it, the two banks have contributed to GCB's much much bigger capacity now. They can do much more bigger transaction than ever!”

Mr. Semanu Korkor who has high prospects of a comeback from both founders urged Ghanaians to “celebrate” rather than make a funeral out of the issue. He tasked young and emerging entrepreneurs to work towards “building something for other bigger institutions to have an interest in acquiring”.

Background:

Several sections of the public, particularly distressed customers of the UT and Capital Banks took to various platforms to criticize both banks following the Bank of Ghana's announcement of license revocation and a takeover by the GCB Bank of the two banks.

Two troubled financial institutions, UT Bank and Capital Bank, were

The two banks are said to be financially insolvent – putting customers’ investments at great risk – and the Bank of Ghana (BoG) was compelled to intervene.

The acquisition was in line with Section 123 of the Banking Act, 2016 (Act 930), which grants the Central Bank the authority to revoke the licence of any bank that is deemed to be in financial distress.

The unannounced action, which was carried out to prevent mass withdrawal by depositors, caused fear and panic among customers, with the BoG assuring that there was no cause for alarm and that their investments are safe.

Immediately the announcement was made, the two banks were rebranded with GCB logo at both the Airport and Spintex Road headquarters.

Here’s the full post of Nelson Semanu Kokor on facebook: