Good Morning Ladies and Gentlemen of the press
1. Thank you very much for honouring this invitation at such short notice.
2. The Bank of Ghana has approved a Purchase and Assumption (P&A) transaction involving UT Bank and Capital Bank and the GCB Bank. This action was taken to protect depositors’ funds and strengthen Ghana’s financial sector. This press conference will provide more clarity on the transaction.
3. The Banks and SDI Act, 2016 (Act 930) provides that undercapitalised banks be given 180 days to correct their capital position. Significantly undercapitalised banks are requested to reach a minimum capital adequacy of 5 percent in 90 days and 10 percent in 180 days. In the case of insolvent banks and banks that are likely to become insolvent, the Bank of Ghana is mandated to revoke their licences.
4. The Purchase and Assumption transaction has distinct benefits as customers will suffer no loss, the acquiring bank can increase its market share, and productive financial assets are maintained.
5. The first point of emphasis is that, no depositor will lose his or her funds and all depositors can continue to do normal banking business with GCB Bank.
6. Under the Purchase and Assumption (P&A) transaction, GCB Bank will acquire all deposits and some selected assets of UT Bank and Capital Bank. The premises of UT Bank and Capital Bank will now be rebranded as branches of GCB Bank. All customers can continue normal banking business at these branches. All debtors should continue making their loan repayments as legally scheduled.
7. Ladies and Gentlemen, banks play a crucial role in financial intermediation for growth and development of the country. However, there are risks associated with performing this role, which should be managed effectively to avoid jeopardising the stability of the financial sector.
8. Ladies and Gentlemen, UT Bank and Capital Bank were requested to submit restructuring and capital restoration plans. However, plans submitted were found to be unacceptable. A pro-forma balance sheet of liabilities to be taken and assets to be purchased were prepared and a pool of bidders was asked to express interest. GCB Bank was then selected among three others on the basis of purchase price, cost of funding, branches to be retained, staff to be employed, and impacting the acquiring bank’s capital adequacy ratio.
9. Ladies and Gentlemen, UT Bank and Capital Bank were heavily deficient in capital and liquidity and their continuous operation could have jeopardized not only their depositors’ funds, but also posed a threat to the stability of the financial system. It therefore became necessary for the Bank of Ghana to revoke their licenses and approve a Purchase and Assumption (P&A) transaction to allow GCB Bank, a large bank with the right balance sheet, to take over all deposits and selected assets of UT Bank and Capital Bank.
10. The acquisition of selected assets and deposit liabilities of UT Bank and Capital Bank by GCB Bank is part of the efforts by GCB Bank to further broaden its reach and grow its balance sheet to support a fast growing economy. And, this is in line with our broad objective to position the financial sector to support the government’s transformational agenda.
11. The last phase of the BoG’s action would involve a thorough investigation of operations of UT Bank and Capital Bank and appropriate action will be taken against shareholders, Directors, and key a Management personnel who are found to be culpable.
12. Ladies and Gentlemen, you will recall that after the AQR exercise, a number of banks were not compliant with the capital adequacy ratio. I am happy to report that most of these banks have put in place credible action plans to restore the capital deficiency, and majority of these banks are already compliant as at today, and the overall banking system remains solid and well-capitalized.
13. To conclude, I want to take the opportunity once again assure customers that no one will lose their deposits and you can continue to do business with GCB Bank.
Thank you for your attention.

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