Bank of Ghana took over management of UniBank due to weak supervisory standards and operations
Some economists are advocating an immediate audit into the risks faced by commercial banks in retrieving loans given to their customers to avert a collapse of the financial industry.
The suggestions follow the Bank of Ghana’s decision to allow KPMG takeover the management of uniBank over their low capital levels.
It is unclear what sanctions the central bank could apply of uniBank fails to restore its operations to meet regulatory standards after the six months’ period.
Meanwhile the industry regulator has assured customers that their deposits would be protected throughout the exercise.
The Bank of Ghana (BoG) announced it has taken over the management of a private bank, Unibank.
The Governor of the Central Bank explained at a press conference Tuesday that the takeover is due to challenges facing the bank.
He mentioned weak supervisory standards and weak operations as the cause of the challenges.
In a statement released after the press conference, the BoG said Unibank “persistently suffered liquidity shortfalls and consistently breached its cash reserve requirement.”
Click to listen to the full audio report.