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Business News of Saturday, 24 August 2019


Dr. Asiamah was part of decision to collapse UT, Capital Banks - BoG

The Bank of Ghana has stated that the former Second Deputy Governor Dr. Johnson Asiamah played a role in the decision to allow the GCB Bank to take over the assets of UT and Capital banks after the two had their licenses revoked.

The former second deputy had accused the Bank of Ghana of taking a decision that proved costly to the state in that there were other better offers on the table to manage the banking crisis that plagued the industry.

But the Bank of Ghana in a statement stated that the assertion by the former second deputy could not be true as at the time of the approval of the purchase and assumption decision, he was still an employee of the central bank.

“It is also instructive to note that Dr. Asiama was Deputy Governor at the time when the decision was taken to revoke the licences of UT Bank and Capital Bank, and had every opportunity to propose any other strategy for addressing the insolvency of the said banks if he felt there was a better and more effective strategy,” the statement noted.

“Under the leadership of Governor Addison, the Bank of Ghana has in its earlier press statements said that the reasons for the mass failures of financial institutions we have witnessed in the last two years include regulatory forbearance on the part of previous management of the Bank of Ghana.

“As embarrassing as this is for the Bank of Ghana, the current management under Governor Addison will be doing the people of Ghana a great disservice if this admission was not made. Without pointing fingers at any particular individual, the Bank of Ghana has in all sincerity made this assertion in good faith,” the Bank of Ghana stated.