The Bank of Ghana (BoG) has defended its decision to revoke the licences of Heritage Bank Limited and Premium Bank (now under receiverships), explaining that the action was fair and transparent…
The Bank of Ghana (BoG) has defended its decision to revoke the licences
of Heritage Bank Limited and Premium Bank (now under receiverships),
explaining that the action was fair and transparent.
Subsequently, the Governor of the central
bank, Dr Ernest Addison, said it was misleading for sections of the
public to assume that the two banks, particularly Heritage Bank Limited,
had been maltreated, leading to its collapse on January 4 this year.
The Governor was responding to questions on the collapse of the two banks at a news conference on Monday.
Indecent haste
Following the collapse of the two banks,
whose liabilities and selected assets were later transferred to
Consolidated Bank Ghana limited, the now-defunct board, Founder and
majority shareholder of Heritage Bank, Mr Seidu Agongo, accused the
central bank of unjust treatment.
The board and Mr Agongo, a businessman and
philanthropist, said in separate statements that prior to the revocation
of the bank’s licence, the central bank had acted in manners that
showed that HBL and its significant shareholder were in good standing.
To their surprise, however, the two
stakeholders said the central bank later revoked the licence of the hank
on grounds that included Mr Agongo not being ‘fit and proper’ to hold a
banking licence.
Mr Agongo described the assertion by BoG,
which was premised on the source of the GH¢120 million used to establish
the bank, of which a criminal prosecution is ongoing, as indecent
haste.
Why it’s fair
When asked what the bank makes of those
positions, the central bank governor said he would prefer not to discuss
the collapse of Heritage Bank further.
“I think the BoG has been very fair and transparent in all our actions.
“If you look at the press statements that we
issued for both Heritage and Premium banks, we gave all the details and
the reasons why they did not meet the December 31, 2018 deadline, they
were more than three or four factors which were enumerated,” he said.
Recounting the reasons, he said the two
banks “did not meet the GH¢400 million capital requirement, they did
attract private investors to bring in additional money to allow them to
meet the GH¢400 million required in addition to several other factors,
which did not make them qualified to continue to have that universal
bank licence.”
Strong banking sector
On the banking sector, Dr Addison said the
reforms and recapitalisation exercises had succeeded in delivering a
strong banking sector that was now more positioned to support economic
growth.
He said the clean-up exercise protected deposits of over 1.5 million depositors with deposits of GH¢11.6 billion.
“This includes deposits of savings and loans
companies, rural and community banks, investment fund managers, pension
funds and life insurance companies with the banks,” he explained.
Going forward, he observed that the central
bank would have to focus on reducing the high non-performing loans
(NPLs) in the sector and addressing the risks associated with the high
degree of interconnectedness in the financial system.
Those, he said, required close monitoring to ensure financial stability.
Hello! Do you use Twitter? I’d like to follow you if that would be ok.
I’m absolutely enjoying your blog and look forward to new posts.
I could not refrain from commenting. Well written! adreamoftrains
best web hosting company
I’ll immediately grasp your rss feed as I can’t find
your e-mail subscription link or e-newsletter service.
Do you’ve any? Please let me recognise in order that I could subscribe.
Thanks.
… [Trackback]
[…] Read More on on that Topic: newscencord.org/we-were-fair-to-heritage-premium-banks-bog/ […]
… [Trackback]
[…] Info on that Topic: newscencord.org/we-were-fair-to-heritage-premium-banks-bog/ […]
… [Trackback]
[…] Find More Info here to that Topic: newscencord.org/we-were-fair-to-heritage-premium-banks-bog/ […]
… [Trackback]
[…] Read More on to that Topic: newscencord.org/we-were-fair-to-heritage-premium-banks-bog/ […]
… [Trackback]
[…] Here you can find 37479 more Information on that Topic: newscencord.org/we-were-fair-to-heritage-premium-banks-bog/ […]
… [Trackback]
[…] Info on that Topic: newscencord.org/we-were-fair-to-heritage-premium-banks-bog/ […]
… [Trackback]
[…] Find More on on that Topic: newscencord.org/we-were-fair-to-heritage-premium-banks-bog/ […]
… [Trackback]
[…] Find More on to that Topic: newscencord.org/we-were-fair-to-heritage-premium-banks-bog/ […]
… [Trackback]
[…] Read More Information here to that Topic: newscencord.org/we-were-fair-to-heritage-premium-banks-bog/ […]
… [Trackback]
[…] There you will find 67022 additional Information to that Topic: newscencord.org/we-were-fair-to-heritage-premium-banks-bog/ […]
… [Trackback]
[…] Read More on on that Topic: newscencord.org/we-were-fair-to-heritage-premium-banks-bog/ […]
… [Trackback]
[…] Read More Information here to that Topic: newscencord.org/we-were-fair-to-heritage-premium-banks-bog/ […]
… [Trackback]
[…] Find More here on that Topic: newscencord.org/we-were-fair-to-heritage-premium-banks-bog/ […]
… [Trackback]
[…] Find More Info here to that Topic: newscencord.org/we-were-fair-to-heritage-premium-banks-bog/ […]
… [Trackback]
[…] Here you can find 72081 more Info to that Topic: newscencord.org/we-were-fair-to-heritage-premium-banks-bog/ […]
… [Trackback]
[…] There you will find 33837 more Information to that Topic: newscencord.org/we-were-fair-to-heritage-premium-banks-bog/ […]
… [Trackback]
[…] Find More Information here on that Topic: newscencord.org/we-were-fair-to-heritage-premium-banks-bog/ […]
fastest delivery of generic cialis
American health
buy cialis online overnight
USA delivery
This was awesome! I would like you to clean up all this spam though