TUC calls for investigations into collapse of 5 banks

Dr Yaw Anthony Baah,TUC boss

Dr Yaw Anthony Baah,TUC boss

The Trade Union Congress (TUC), has called for proper investigations into the activities that resulted in the collapse of five banks, and those found culpable punished in accordance with the country’s laws.

A statement signed and issued by Dr. Yaw Baah, Secretary General of TUC, yesterday in Accra, said punishing those responsible for the collapse, would prevent a repetition of irregularities, including regulatory and supervisory failures that led to the current situation.

Beyond the effort to ensure depositors’ funds were safe, the TUC urged the Bank of Ghana (BoG) to do all within its power to safeguard jobs that were provided by the defunct banks.

The statement said given the current state of joblessness in the country, it was important that developments in the banking sector and the measures being taken to address them do not add to the huge unemployment challenge.

The TUC commended the BoG for the establishment of the Consolidated Bank, adding that any loss of funds would have considerably damaged the confidence in the banking sector, which could have serious consequences for the entire economy.

The BoG, last Wednesday consolidated five local universal banks into a new entity called Consolidated Bank Ghana Limited.

The affected banks are UniBank, The Royal Bank, Beige Bank, Sovereign Bank and the Construction Bank.

The consolidation of the five banks into a single entity follows the revocation of their licences due to their weak financial position, inability to meet their financial obligations despite the continuous liquidity support from the BoG, and increasing non performing loans and severe capital impairment.

In addition, the BoG said some of the banks procured their licences through false pretences in breach of the country’s banking and financial rules.

By Times Reporter



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