Bank of Ghana, BOG, has begun investigations into the role of the various directors of UniBank which has led to the current state of the bank.
Second Deputy Governor of BOG, Elsie Awadzi said the Central Bank is investigating what has led to the current state of the bank and after their findings, they will do the needful.
On funds that will be used to pay the newly appointed administrator of UniBank, KPMG, Elsie Awadzi said per the law, UniBank will pay for the services of the international audit firm.
Bank of Ghana has on Tuesday, March 20, 2018, taken over the management of locally owned bank UniBank by appointing audit firm KPMG as the new administrator of the bank.
The decision by BOG was taken under Sections 107 and 108 of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930) the Bank of Ghana.
This means all assets including the management of the bank will be in the hands of the new administrator, KPMG with BOG having an oversight responsibility for the actions of KPMG.
BOG giving reasons for the take over said UniBank has persistently maintained a capital adequacy ratio (CAR) below zero (currently negative 24%), making it technically insolvent and this contravenes Section 29 of Act 930 which requires a minimum CAR of 10% to be maintained at all times.
"Subsequent reviews of UniBank’s books by Bank of Ghana’s supervision teams showed that the bank had not reported the state of its loan book accurately. Consequently, by October 2017, its CAR was estimated at negative 12.5 %, making it technically insolvent. By December 2017, its CAR had dropped further to negative 24%. The bank has failed to submit its monthly returns to the Bank of Ghana for January and February 2018, and as a result, Bank of Ghana has no evidence to suggest that its CAR has been restored to the regulatory minimum of 10%."
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