UniBank put under administration – BOG

Bank of Ghana (BOG) has announced that, UniBank Ghana Limited (UniBank) has been placed under administration.

The appointment of the official administrator according to the central bank is aimed at saving UniBank from imminent collapse.

The announcement comes just two weeks after uniBank announced a takeover of adb after some shareholders of the latter, pledged their shares in the bank to them which BoG at the time, dismissed and explained that it has not approved any such agreement.

The CEO of uniBank, Dr, Kwabena Duffour Junior told the B&FT that, uniBank is set to assume controlling interest in ADB after a consortium of shareholders pledged their shares, proceeds, entitlement and voting rights to Unibank.

Going into administration according analyst, means the company is put under the management of a court appointed administrator, who must be a licensed insolvency practitioner appointed by the courts, creditors, or company directors.

In a press conference addressed by the Governor of the Bank of Ghana, Dr. Ernest Kwamina Yedu Addison said, the Central bank in exercise of its powers under Sections 107 and 108 of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930) the Bank of Ghana has, effective today 20th March 2018, appointed KPMG as Official Administrator for UniBank Ghana Limited (UniBank).

Section 107 of Act 930 empowers the Bank of Ghana to appoint an Official Administrator to take official control of a bank when its capital adequacy ratio (CAR) has fallen below 50% of the required minimum of 10% (i.e. below 5%).”

Mr. Addison commenting on whether or not UniBank will be returned to its owners said, under section 108 of Act 930, the Official Administrator is authorized to exercise a variety of powers to rehabilitate and return the bank to regulatory compliance within a period of six months, at the end of which the bank will be returned to private ownership and management.

Again, the appointment of the administrator, according to the BOG, will prevent potential losses to depositors and other creditors, and ensure that the financial condition of the bank does not create further risks for the entire financial system.

Click on the link to read the full statement of the Bank of Ghana “Press Release_UniBank”