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BoG staff complicit in UT, Capital Bank collapse won’t be spared – BoG Governor


The Governor of the Central Bank has disclosed that staff of the Bank who were compromised in the supervision of the collapsed banks such as UT Bank and Capital Bank would face the music.

Dr Ernest Addison said like other directors of the aforementioned banks, staff who played a role in the demise of the banks would not be spared.

“Don’t be surprised if internal people who were involved are also invited in the ongoing accountability process”, he said Monday.

In March this year, a number of Directors of defunct UT and Capital Bank were invited by the Economic and Organized Crime Office (EOCO) to answer questions on their role in the collapse of these banks.

Although the investigations have not concluded yet, Dr Addison said transparency is key in the process and no one would be spared.

Ghana Reference Rate (GRR)

The Governor also stated that the effect of the GRR on bank lending rates will take some time to be explored.

In responding to a question on the impact of the rate reduction on the GRR which is the new model for lending rates by commercial banks in the country, the governor stated that “it’s too early for us to start drawing any conclusions”.

According to him, whether the new reference rate is beginning to address the lack of transmission problem which was experienced under the old regime, by the next quarter the changes will be felt.

The GRR was developed by the Bank of Ghana in consultation with the Ghana Association of Bankers.

The maiden GRR was launched in April with a rate of 16.82% with the rate currently at 16.74%.

Banks in Ghana are to use this as a reference point in making out new loans.

The policy rate, the 91-day treasury bill rate and the interbank rate are the components of the GRR. Any change in any of these components should affect the overall GRR.

KPMG on Unibank 

Dr Ernest Addison also stated that the administrator for Unibank, KPMG had not yet made available a report on their own findings.

The regulator disclosed that all other things being equal, a report should come out at the end of this month. He stated that once the report is made available, it would be made public.

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