Revocation of Licence: Read the letter Bank of Ghana sent to founder of defunct UT Bank

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Revocation of Licence: Read the letter Bank of Ghana sent to founder of defunct UT Bank

^{Published on 2025-03-08 09:41:20 - GhanaWeb}

The Bank of Ghana, in August 2017, revoked the license of two commercial banks - UT Bank and Capital Bank. The action was triggered by the inability of the two banks to turn around their negative capital adequacy positions,

The article on GhanaWeb details the Bank of Ghana's decision to revoke the license of UT Bank, as communicated in a letter to the bank's founder, Prince Kofi Amoabeng. The letter, dated August 14, 2017, explains that the revocation was due to UT Bank's significant undercapitalization and insolvency, which posed a risk to the stability of the financial system. The Bank of Ghana had previously issued a notice on March 29, 2017, requiring UT Bank to recapitalize to meet the new minimum paid-up capital requirement of GH¢400 million by December 31, 2018. Despite this, UT Bank failed to comply, and its financial condition deteriorated further, leading to the decision to revoke its license to protect depositors and maintain financial stability. The letter also outlines the immediate steps for the bank's dissolution, including the appointment of a receiver and the assurance that depositors' funds would be transferred to a newly established bridge bank.

Read the Full GhanaWeb Article at:
[ https://www.ghanaweb.com/GhanaHomePage/business/Revocation-of-Licence-Read-the-letter-Bank-of-Ghana-sent-to-founder-of-defunct-UT-Bank-1974557 ]

N@N

Revocation of Licence: Read the letter Bank of Ghana sent to founder of defunct UT Bank