Customer panic as Ghana central bank takes over two distressed banks

<p>There is a state of panic among customers of two commercial banks in Ghana after the Bank of Ghana (BoG) announced a takeover of the banks.</p> <p>Most patrons of UT bank and Capital bank, thronged the premises on Monday morning after an announcement that the operating licenses of the two outfits had been revoked.</p> <p>A statement from the BoG read: “This action has become necessary due to severe impairment of their capital.” The BoG stressed that the move was “to strengthen Ghana’s banking sector, ensure financial stability and protect depositors’ funds.”</p> <p>The central bank whiles asking customers to remain calm in the wake of the development said they had handed control of the affected banks to the national commercial bank – Ghana Commercial Bank (<span class="caps">GCB</span>).</p> <p>“The main offices and branches of UT Bank and Capital Bank will be under control of <span class="caps">GCB</span> and will be opened at 1pm today for normal business transactions. Customers of UT Bank and Capital Bank are now customers of <span class="caps">GCB</span>. </p> <p>“The Bank of Ghana assures the public that all customers can continue normal banking business at all UT Bank and Capital Bank facilities which are now branches of <span class="caps">GCB</span>.”</p> <p>Local media reports indicate that as at midday today, there were rebranding efforts ongoing at the two distressed banks with <span class="caps">GCB</span> logos replacing them.</p>

This action has become necessary due to severe impairment of their capital.