NDC Takes Credit For BoG's Bailout Ability

Deputy General Secretary of the National Democratic Congress (NDC), Koku Anyidoho, has said the main opposition party in Ghana must be hailed for empowering the Bank of Ghana when they were in power.

According to him, the Act of Parliament that empowered the Central Bank to take over distressed banks as a way of saving deposits by customers was passed by the NDC administration last year; an initiate that must be credited to the NDC in light of GCB Bank’s takeover of the UT and Capital banks.

On Monday, the Bank of Ghana announced that GCB Bank has taken over UT Bank Ltd and Capital Bank Ltd as the two banks were struggling to operate financially.

A statement issued by the Central Bank said: “The Bank of Ghana has approved a Purchase and Assumption transaction with GCB Bank Limited that transfers all deposits and selected assets of UT Bank Ltd and Capital Bank Ltd to GCB Bank Ltd.

The Bank of Ghana has revoked the licenses of UT Bank Ltd and Capital Bank Ltd. This action has become necessary due to severe impalement of their capital. The remaining assets and liabilities will be realised and settled respectively through a receivership process to be undertaken by Messers Vish Ashiagbor and Eric Nana Nipah of PricewaterhouseCoopers.

“The main offices and branches of UT Bank and Capital Bank will be under the control of GCB Bank, and will be opened at 1 PM today for normal business transactions.”

Speaking in an interview on Asempa FM’s Ekosii Sen programme on Wednesday, Mr Anyidoho told host, Omanhene Kwabena Asante, “It was not the government’s decision to rescue the banks. It was the BoG that took the right decision, not the government.

“It is the Bank of Ghana as the regulator that acted. It has got nothing to do with the government. Even the law that allowed the BoG to do what it did was passed in 2016 under an NDC administration which has allowed the BoG to be so proactive to save depositors’ moneys. It wasn’t passed by the NPP.”