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Business News of Tuesday, 15 August 2017

Source: classfmonline.com

UT, Capital takeovers not overnight decision – GCB

Anselm Ransford Sowah, Managing Director of GCB, has revealed that the decision to take over UT and Capital banks was well planned ahead of time.

According to him, the decision was carefully and strategically taken due to the potential GCB saw in those two banks.

On Monday, the Bank of Ghana announced that GCB Bank has taken over UT Bank Ltd and Capital Bank Ltd as the two banks were struggling to operate financially.

A statement issued by the Central Bank said: “The Bank of Ghana has approved a Purchase and Assumption transaction with GCB Bank Limited that transfers all deposits and selected assets of UT Bank Ltd and Capital Bank Ltd to GCB Bank Ltd. The Bank of Ghana has revoked the licenses of UT Bank Ltd and Capital Bank Ltd. This action has become necessary due to severe impalement of their capital. The remaining assets and liabilities will be realised and settled respectively through a receivership process to be undertaken by Messers Vish Ashiagbor and Eric Nana Nipah of PricewaterhouseCoopers.

“The main offices and branches of UT Bank and Capital Bank will be under the control of GCB Bank, and will be opened at 1 PM today for normal business transactions.”

Answering questions from the press after a press conference in Accra on Tuesday, Mr Sowah said, among other things that: “This was not an overnight decision, it was taken carefully and strategically.

“We took this decision because we believe they have unique attributes we can use to enhance our brands.

“One of them, they are very much in to the SME space so the takeover is something that we will like to enhance our SME offering.”