Accra, Ghana//-The Bank of Ghana (BoG) has appointed Dr Joseph O. France as an Advisor to advise the management effective 25th March 2024.
This is by section 101(1) of the Banks and Specialised DepositTaking Institutions Act, 2016 (Act 930).
The Advisor, a press release issued by the BoG explained is expected to help monitor UMB’s recapitalization efforts and implementation of governance reforms agreed with the Bank of Ghana.
The Advisor will be at post at UMB until otherwise advised by the Bank of Ghana and will furnish the Bank of Ghana with a status report on the bank as frequently as the Bank of Ghana may require.
It is important to note that an Advisor, unlike an Official Administrator, does not take over the powers, responsibilities, and duties of the bank’s shareholders, directors, or management.
Under Act 930, the Advisor may attend meetings of the Board of Directors or Committees of the bank without voting at such meetings.
The Bank of Ghana takes this opportunity to assure depositors and customers of UMB that the bank remains open for business under the control of UMB’s management team.
The Bank of Ghana remains committed to promoting a sound and resilient banking sector that retains the trust and confidence of the public.
Speaking to journalists at the 117th Monetary Policy Committee (MPC) press conference in Accra on Monday, March 25, BoG Governor, Dr Ernest Addison revealed that out of a total of 23 universal banks in the country, more than half are fully capitalised and have no need for recapitalisation.
According to experts, bank capitalization refers to the process of raising capital to strengthen a bank’s financial position. It involves increasing the bank’s capital accounts by issuing new shares, retaining earnings, or obtaining funds from external sources.
He added: “Most of the outstanding banks have met more than two-thirds of the required recapitalisation over three years within one year as of the end of 2023”.
Touching on the general health of the financial sector, Dr Addison said broadly the banking sector remains stable, despite the elevated credit risks.
However, the appointment of an advisor for UMB rings a bell.
According to him, the Bank’s liquidity and profitability positions have continued to improve.
