Public Agenda NewsPaperPublic Agenda NewsPaper
  • General News
  • Politics
  • Business
  • Health
  • Development Agenda
  • World News
  • Features & Opinions
  • Election watch
  • Editorial
Font ResizerAa
Public Agenda NewsPaperPublic Agenda NewsPaper
Font ResizerAa
  • General News
  • Politics
  • Business
  • Health
  • Development Agenda
  • World News
  • Features & Opinions
  • Election watch
  • Editorial
Search
  • General News
  • Politics
  • Business
  • Health
  • Development Agenda
  • World News
  • Features & Opinions
  • Election watch
  • Editorial
Follow US
Breaking NewsBusiness

‘BoG intervention in uniBank timely’

Latifa Carlos
Last updated: March 22, 2018 10:27 am
Latifa Carlos
Share
4 Min Read
Mr Alhassan Andani
Mr Alhassan Andani
SHARE

The President of the Ghana Association of Bankers (GAB), Mr Alhassan Andani, has backed the move by the Bank of Ghana (BoG) to hand over the management of uniBank to the auditing firm, KPMG, to restore uniBank to financial health.

The timing, Mr Andani, who is also the Managing Director of Stanbic Bank, said, was appropriate to protect the bank’s depositors until it was financially rehabilitated.

“The bank will be returned to its owners after the six-month period when it is fully restored to financial health. The owners of the bank have absolute liability of the bank when it is financially rehabilitated,” he said.

The BoG last Tuesday declared uniBank insolvent and placed it under an official administrator, KPMG, to take control of the bank.

More Read

$100m legal war erupts between E&P and Azumah Resources
Ghana to attract more global oil investors after Akoma and Eban 1X discoveries
Govt cracks down on illegal mining task forces amid extortion claims
Dr. Adrian Alter appointed new IMF resident representative for Ghana
Ablekuma North: EC to rerun Parliamentary Election in 19 Polling Stations

The move is aimed at saving the bank from imminent collapse and prevent potential losses to depositors and other creditors.

It is also designed to ensure that the financial condition of the bank does not create further risk for the country’s financial system.

Return to owners

Many people have wondered if the uniBank will be returned to its owners after the restoration of financial health by the local chapter of the international auditing firm.

There are yet others who have criticised the timing of the takeover of uniBank, coming on the back of the liquidation of the UT and the Capital banks.

But Mr Andani, in an interview with the Daily Graphic, said the timing was appropriate and the action was a step in the right direction to protect depositors’ funds before the financial situation of the bank worsened.

A banking consultant, Nana Otuo Acheampong, agreed with Mr Andani, saying that but for the swift intervention of the central bank, the situation could have deteriorated further.

“The timing is as good as any time because it is not the timing which is important but what is on the ground,” he said.

He was hopeful that the bank would be returned to its owners after the financial corrections, but under some conditions.

Directors to meet conditions

“I am sure that the directors will be given some conditions to meet before they take full responsibility of the bank after it has been restored to financial health in six months,” he said.

He said if the central bank had not intervened, uniBank could have damaged depositors’ funds, which would have affected the country’s financial system.

He said the BoG was taking the action against uniBank now because the apex bank had observed many infractions and had been working with the management of the uniBank to correct those anomalies but the problems had persisted.

“Central banks do not always use the stick approach but use the carrot approach to guide you into line. It is only when you are not complying that the stick comes in,” Nana Acheampong said.

He emphasised the fact that uniBank had some value that the BoG had identified and that was why the central bank had not liquidated uniBank but only declared it insolvent, so that it could be rescued.

“Some of the challenges uniBank has gone through are purely a management problem, and if a bank’s management is making reckless decisions, you move in quickly to save the bank and its depositors,” he said.

 

Source: Graphic online

Share This Article
Facebook Whatsapp Whatsapp Email Copy Link Print

Latest News

Ghana secures $370M from IMF after successful review
July 8, 2025
Mid-Year budget to clarify road contractor payments – Ampem Nyarko
July 2, 2025
 ISODEC Urges Citizens to Engage More in Local Governance Processes 
July 2, 2025
Mfantseman Youth Trained to Strengthen Local Governance Participation 
July 2, 2025
Government Reaffirms Commitment to Investment-Friendly Environment to Attract Development Financing
July 1, 2025
New UN report charts path out of debt crisis threatening global development
June 30, 2025
World Bank backs Ghana $360m to strengthen macroeconomic stability
June 30, 2025

You Might Also Like

Breaking NewsElection watchtop stories

GJA holds national and regional elections today

June 30, 2025
Breaking NewsBusinesstop stories

PURC announces 2.45% increase in Electricity tariffs from July 1

June 26, 2025
Breaking NewsBusinesstop stories

Iran cannot unilaterally shut Strait of Hormuz – NPA boss

June 23, 2025
Breaking NewsBusinesstop stories

Israel-Iran war: Fuel prices likely to rise in July – COPEC

June 23, 2025

About Us

Public Agenda is fou­nded and owned by Pu­blic Agenda Communic­ations.

Public Agenda was founded as a public interest Me­dia entity. Its Visi­on is to contribute to building a well-i­nformed society where accurate informati­on dissemination is the cornerstone of a democratic, just and equitable society.

Its mission is to inform, guide and bui­ld responsible citiz­enship and accountab­le decision making and strive for excell­ence in the media in­dustry. Public Agenda Communications is managed by a Board of Directors.

Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?