The Bank of Ghana (BoG) has justified the need to issue a bond to cater for the gap that has been realized after the assets of collapsed UT bank and Capital bank were compared to its liabilities.

According to the central bank, it is important for government to issue the bond to save the deposits of customers of the defunct banks.

Government has announced plans to issue a two billion cedis bond to cater for the collapse of UT bank and Capital Bank.

Speaking on the Citi Breakfast Show, the Head of Banking Supervision at the BoG, Mr. Osei Gyasi maintained that, such losses are the reason why the central bank must always step in quickly to sanction banks to prevent the tax payer from bearing the cost of the collapse.

“The receiver took over or assumed as far as the good assets and the liabilities that were taken over by GCB are concerned, it is the gap between the asset and the liabilities that would have to be funded by government. That is why I say it the cost to the ordinary tax payer,” he said.

Mr. Gyasi explained that, the receiver—PwC, will net the assets of the bank against it liabilities to determine the extent of the liabilities.

“The receiver process, is such that the receiver will have to realize the assets of these banks which were not taken over by GCB under the purchase and the assumption transaction,” he said.

“There are some assets that were not taken over by GCB and the receiver will have to realize this assets and the proceeds will be used to settle the liabilities that the receiver took over or assumed,” he explained.

By: Lawrence Segbefia/

Sign Up for Our Newsletters

Stay Informed | Stay Smart - Get our daily updates

You May Also Like

No school for me, I make more money selling “hausa koko” than some workers’ salary

Amina admits that she herself would have liked to have completed school but remains adamant that early marriage is not an entirely terrible thing and says she makes more money from “hausa koko” than some workers’ salary

2 former GIS staff fraudulently paid 89,000 Ghana cedis

Two ex-employees of the Ghana Immigration Service (GIS) in Koforidua in the Eastern Region were wrongfully paid a total salary of GHS89,789.68 for three months.

TUC raises concerns over increase in number of casual workers

The Trades Union Congress is displeased about the increasing change of the status of Ghanaian workers in the private sector from permanent staff to contract or casual workers.

Ghanaian Uber drivers go on strike over 25% commission

The Uber drivers in Ghana argue that the percentage given to Uber is unfair and every attempt to resolve this amicably has failed hence their protest.