Metascholar News Portal
The Bank of Ghana (BoG) revoked the licenses of UT Bank and Capital Bank in 2017, citing financial instability and governance challenges within the institutions. This decision, guided by recommendations from the International Monetary Fund (IMF), was part of a broader banking sector cleanup to restore stability and public confidence in the financial system.
Prince Kofi Amoabeng, the former CEO of UT Bank, criticized the process as unfair. He claimed the BoG did not allow sufficient opportunity to present alternative solutions, including proposals for recapitalization. Amoabeng expressed particular concern for the thousands of Ghanaian shareholders and staff who were adversely affected, losing investments and livelihoods.
He stated that the rejection of recapitalization offers was not communicated transparently. According to Amoabeng, had the BoG informed him of the rejection, alternative measures could have been pursued to save the bank. The sudden license revocation, he argued, overlooked the interests of shareholders, whose publicly traded shares lost value without appropriate redress.
The two banks were subsequently acquired by GCB Bank, which absorbed their assets and liabilities. This decision, while stabilizing the sector, left many stakeholders particularly shareholders and employees feeling neglected. Amoabeng’s criticisms highlight concerns about the transparency and fairness of the cleanup process.
This event underscores the tension between regulatory measures for financial stability and the socio-economic impacts on stakeholders. It raises important questions about balancing sector-wide reforms with the interests of individuals and communities affected by such interventions. The incident remains a key example of the complexities involved in financial regulation.
Victor Amos
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