The Bank of Ghana has denied reports that some other banks are in similar situations to UT Bank and Capital Bank.
The shut down of the two and their takeover by GCB Bank has sparked questions over whether other local banks are in similar dire straits and might require action by the Central Bank.
However, speaking at a press conference in the capital today, the Governor of the Central Bank, Ernest Kobina Addison said the two banks are the only ones in so bad a situation that they required a takeover.
“I can emphatically tell you that these are the only two insolvent banks in the system”, Dr Addison said.
He said whilst some other banks were in one sort of trouble or another, under the Bank of Ghana’s supervision, they have been brought to safe levels in terms of their capital meeting central bank requirements.
“I don’t think there are any issues there in terms of whether there are other banks that are in the same situation as these two banks.”
The number one issue which hurt these two banks – and could still leave other banks in similar situations to those two is the issue of non performing loans granted to the public.