Bank of Ghana says former Second Deputy Governor, Dr Asiamah was part of the decision to collapse UT, Capital Banks

Bank of Ghana says the former Second Deputy Governor was part of the decision to collapse two banks in the country.
This comes after the former Second Deputy Governor accused the central bank of spending too much money in the decision.
The bank said he had every opportunity to propose any other strategy for addressing the insolvency of the said banks during that time.

The revelation comes after the former second deputy accused the central bank of taking a decision that proved costly to the state in that there were other better offers on the table to manage the banking crisis that plagued the industry.

The BoG in a statement said the assertion by the former second deputy could not be true. This, according to the bank, is because as at the time of the approval of the purchase and assumption decision, he was still an employee of the central bank.

“It is also instructive to note that Dr Asiama was Deputy Governor at the time when the decision was taken to revoke the licences of UT Bank and Capital Bank and had every opportunity to propose any other strategy for addressing the insolvency of the said banks if he felt there was a better and more effective strategy,” the statement noted.

Adding that, “Under the leadership of Governor Addison, the Bank of Ghana has in its earlier press statements said that the reasons for the mass failures of financial institutions we have witnessed in the last two years include regulatory forbearance on the part of previous management of the Bank of Ghana.”

“As embarrassing as this is for the Bank of Ghana, the current management under Governor Addison will be doing the people of Ghana a great disservice if this admission was not made. Without pointing fingers at any particular individual, the Bank of Ghana has in all sincerity made this assertion in good faith,” the Bank of Ghana stated.