More Ghanaian-owned banks to collapse soon -Lecturer warns

A senior lecturer at the Central University, Dr. Deodath Adenutsi has predicted that more Ghanaian-owned banks will soon collapsed following the takeover of UT Bank and Capital Bank by Ghana Commercial Bank (GCB).

According to Dr. Adenutsi, he foresaw the collapse of UT and Capital Bank which according to the Bank of Ghana had been on life support for the past two years.
Speaking on the Gold Power Drive Tuesday, Dr. Deodath Adenutsi, who has depth knowledge about banking, said “let me caution that it is possible other banks operating in the country will follow soon.”

The lecturer however failed to provide names of the distressed banks likely to follow UT Bank and Capital Bank which have been taken over by the GCB due to “severe impairment of their capital.”

He said the rate at which new banks are putting up permanent buildings across the country are indications that such acts could affect their capital flows leading to the collapse of such banks.

“New banks emerging and trying to put up permanent structures across the length and breadth of the country alone can affect their capital flow or liquidity position because majority of monies are being put into such movable capital (buildings) which will take longer time to recruit,” Dr. Deodath Adenutsi told Samuel Eshun.
Dr. Deodath Adenutsi’s comment comes at a time the Bank of Ghana had said it does not expect other banks to face similar collapse as UT and Capital Banks because “all banks in the country have enough money to operate.”
Governor of the Bank of Ghana, Dr Ernest Addison, in a press statement allayed fears of possible collapse of other banks in the country.
After the takeover, the offices of UT Bank and Capital Bank have been rebranded to reflect the current ownership.
Meanwhile, GCB has assured customers of the two collapsed banks that their monies are safe following the takeover.
By: Coffie Emmanuel/Radiogold905.com