The Bank of Ghana (BoG) will sanction officials whose actions caused UT Bank and Capital Bank to collapse.

This was disclosed by the governor of the Bank of Ghana, Dr Ernest Addison at a press conference held in Accra on Monday (August 14, 2017).

“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.”

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He added that “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,” he added.

His comments come after the Bank of Ghana announced the take-over of the two banks by GCB Bank.

READ ALSO: GCB Bank rebrands UT and Capital banks

This follows their inability to turn around their negative capital adequacy position.

This necessitated a Purchase and Assumption agreement allowing GCB Bank to take over all deposit liabilities and selected assets of both UT Bank and Capital Bank, per section 123 of the Banks and Specialised Deposit-Taking Institutions (SDIs) Act, 2016 (Act 930).

Dr Addison also assured the customers of both banks that their investments were safe and that “no depositor will lose his or her funds and all depositors can continue to do normal banking business with GCB Bank.”

Read below the full address by the Governor

BOG STATEMENT ON UT BANK & CAPITAL BANK

Thank you for your attention.