Joe Jackson, the Director of Business Operations at Dalex Finance, has assured customers of the Universal Merchant Bank Ltd. (UMB) that there is no cause for alarm regarding the Bank of Ghana’s (BoG) monitoring of the bank’s recapitalisation efforts.
He urged customers to have confidence in the central bank’s role.
The BoG has appointed Dr Joseph O. France, the former Head of Financial Stability at the BoG, as a Management Advisor to UMB. His role will involve advising UMB’s management, monitoring its recapitalisation efforts, and overseeing governance reforms agreed upon with the Bank of Ghana.
This appointment aligns with section 101(1) of the Banks and Specialised Deposit Taking Institutions Act, 2016 (Act 930). Dr France will remain at UMB until otherwise advised by the BoG and will provide the central bank with a status report on the bank as frequently as required.
Unlike an Official Administrator, the advisor does not assume the powers, responsibilities, and duties of UMB’s shareholders, directors, or management.
The BoG has assured UMB’s depositors and customers in a statement that the bank remains open for business under the control of UMB’s management team.
In an interview with Umaru Sanda Amadu on Eyewitness News on Citi FM on Thursday, Mr Jackson stated, “The depositors and clients of UMB, this should not scare you. This should give you confidence that the central bank is playing its role and that they are stepping in before things really get bad. And your deposits and your transactions are still safe.”
Recapitalisation
The Bank of Ghana gave banks up to the end of September 2023 to provide their recapitalization plans.
This was to ensure that banks whose capitals are below the minimum capital requirement quickly build it up to GH¢400 million as proposed by the Central Bank.
Currently, over half of the 23 banks in the country have fully recapitalized, as disclosed by Dr. Ernest Addison, the Governor of the Bank of Ghana.
This indicates progress in meeting regulatory requirements and strengthening the financial stability of the banking industry as the 2025 deadline draws near.
The banks that haven’t fully met the capitalization requirements have made significant strides, meeting more than two-thirds of the required recapitalization over a three-year period.
This suggests a concerted effort within the banking sector to comply with regulatory standards and enhance their financial health.
Explore the world of impactful news with CitiNewsroom on WhatsApp!
Click on the link to join the Citi Newsroom channel for curated, meaningful stories tailored just for YOU: https://whatsapp.com/channel/0029VaCYzPRAYlUPudDDe53x
No spams, just the stories that truly matter! #StayInformed #CitiNewsroom #CNRDigital
