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Business News of Friday, 4 May 2018

Source: citinewsroom.com

Depositors funds are safe - BoG assures Sovereign Bank customers

The Bank of Ghana has assured customers of Sovereign Bank that their deposits are safe following the appointment of an advisor to oversee the operations of the bank.

According to the central bank, it made the appointment because the bank is facing governance and capital challenges.

A statement from the bank to Citi Business News said the decision to appoint an advisor followed the completion of an onsite examination of the bank in December last year.

Citi Business News understands the role of the advisor will be among others help monitor the bank’s recapitalization efforts and implementation of governance reforms as agreed by the Bank of Ghana, while furnishing it with a status report on the bank frequently.

The advisor, according to the central bank will stay on until otherwise.

Meanwhile, the advisor unlike an official administrator does not take over the powers responsibilities and duties of the bank’s shareholders directors and management.

The advisor can however attend board meetings.

The latest development follows the takeover of uniBank and appointment of KPMG as an administrator by BoG and the purchase of UT and Capital bank by GCB bank over governance and capital challenges as well.

The central bank has stated the move is to bring sanity into the banking sector.