BoG Erred In Licensing 6 Banks – Governor

The Central Bank has admitted it erred in granting license to about six commercial banks in two years.

This is the first time the bank has openly admitted to contributing to the recent woes in the financial landscape.

The Bank of Ghana (BoG) revoked the licenses of UT and Capital Banks due to severe impairment of capital on August 14, 2017, authorizing GCB Bank to take over management of the defunct Banks under a Purchase and Assumption Agreement.

Also, the Central Bank March this year handed the administration of uniBank to KPMG to restore it to “regulatory compliance.”

Addressing a press conference Monday after the 82nd Monetary Policy Committee (MPC) meeting, the governor of the Central Bank Dr Ernest Addison said: “There are quite a number of Banks in the history of the Bank of Ghana being licensed a very rapid pace nearly six, seven or eight Banks in two years which is not something one can easily vouch for and I am not sure that it is a good observation that so soon after licensing some of them can run into liquidity problems.”

He, however, assured that recent reforms being carried out by his outfit will make the sector more resilient.

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