BOG to the rescue of two distressed local banks

Information reaching Ghanacrusader.com indicates that, The Central Bank is scheduled to put two more local banks in administration this week,

One of the banks is linked to a popular business-magnate while the other is alleged to have ties with a famous traditional authority.

According to sources, both banks are facing acute liquidity challenges and have been unable to deal with their problems despite regular support from the Central bank.
The two banks have further become risky because of the panic withdrawals they have suffered over the last few months.

Management of the affected banks are said to have received notification of intention from the Central Bank.
The move comes after the Central bank appointed an advisor to Sovereign Bank Limited last week.

“The Advisor is expected to help monitor the bank’s recapitalization efforts and implementation of governance reforms agreed with the Bank of Ghana. The Advisor will stay in the bank until otherwise advised by the Bank of Ghana, and will furnish the Bank of Ghana with a status report on the bank as frequently as the Bank of Ghana may require.
“The Bank of Ghana takes this opportunity to assure depositors and customers of Sovereign Bank Limited that Sovereign Bank remains open for business under the control of the bank’s own management, and that customers’ deposits are safe,” the regulator said in a statement.
In March this year, the Central bank put popular indigenous bank Unibank in administration over same liquidity challenges.

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