When news of Bank of Ghana, BOG purportedly taking over UniBank broke yesterday March 20, 2018, most customers will be wondering what will be the implications of the take over on their savings at the bank.
Although there has been assurance that all customers saving is intact this what the average customer needs understand.
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.
“UniBank’s problems are part of the legacy issues in the financial sector attributed to weak economic growth and poor corporate governance and risk management practices. It will be recalled that UniBank was one of nine banks identified after the asset quality review exercise undertaken in 2016, to be significantly undercapitalized with a CAR of 4.75%. As part of efforts to recapitalize the bank, it submitted capital restoration plans to the Bank of Ghana which it implemented to build up its capital to 7.7% in August 2017.”
But the decision by BOG will not affect savings and any other transactions of its customers, as the UniBank take over only affects the management of the bank to save it from imminent collapse.