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BoG creates Consolidated Bank to take over 5 struggling banks

The Bank of Ghana (BoG) has announced it is creating the Consolidated Bank Gh. Ltd to take over five struggling banks in the country. Sovereign Bank, Royal Bank, The Beige Bank, Construction Bank and Unibank are the five financial institutions that have run into liquidity challenges. The government has made 450m cedis available for the Consolidated Bank as starting capital and has named Daniel Addo as its CEO.

Daniel Wilson Addo is a Chartered banker with12 years experience in management positions. He is a former Executive Director of First Atlantic Bank Limited At a press conference in Accra, the Governor of the Bank of Ghana Ernest Addison explained the Sovereign Bank obtained their license under false pretence, an act that could attract criminal charges. The bank, he said, is insolvent.

He also said Beige and Construction Banks used the fictitious and non-existent capital to obtain licenses. The banks, therefore, obtained licenses under false pretences. Construction Bank collapses after only a year in operation. It was opened for business in June 2017 becoming the 34th major bank in Ghana.

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