Governor of the Bank of Ghana, Dr. Ernest Addison

Governor of the central bank, Dr Ernest Addison, has disclosed that the Receivers of collapsed banks and financial institutions have so far recovered GH¢1.4 billion cedis representing only 8 percent in assets of depositors locked up funds. According to him, the recovery progress, in terms of recouping the funds, has rather been slow but says there’s an effort to recover the depositor’s funds which have locked up due to the financial sector clean up. “Regarding the performance of recoveries, the Receivers have been able to make some recoveries but they are not as impressive as we had expected, the last time I checked, about GHS¢1.4 billion cedis has been recovered.” “Now we’re looking at the loan portfolio of these banks that were resolved of over GH¢16 billion, so out of the GH¢16 billion, if you’ve recovered just 1.4 billion it tells you that there’s a lot of work more to be done. Yes, the effort is there but the progress however in terms of the amount of cedis they’re recovering is slow.” The governor of the Central Bank said this at a news conference on Friday, January 31 at the 92nd Monetary Policy Committee meeting in Accra.

The receivership process was initiated by the central bank to recover the assets of the banks whose licences were revoked due to liquidity issues. The Receivers of defunct financial institutions will begin from today February 3 begin a five-day auction of assets in a bid to recover investors locked up funds. In 2018, the BoG revoked the licenses of uniBank, the Royal Bank, Beige Capital, Sovereign Bank and

Construction Bank because they were heavily insolvent and could not meet their financial responsibility when the fell due. Earlier in 2017, BoG also revoked the license of UT Bank and Capital Bank for poor corporate governance and liquidity issues