Consolidated Bank Ghana (CBG) makes its first payment of GH¢2 billion to depositors

The Consolidated Bank Ghana (CBG) has paid out some GH¢2 billion to depositors, including microfinance and savings and loans companies.

The amount paid according to the bank is from a bond cash it received from the Bank of Ghana.

CBG further noted that the development should tackle liquidity challenges in the financial sector.

The Managing Director of Consolidated Bank Ghana (CBG), Daniel Wilson Addo made the revelation at the launch of his outfit’s new tagline on Friday, June 21, 2019.

Giving details of the GH¢2 billion payout, he noted that the bank has been working in close contact with the central bank and official Receiver of the CBG to make available the cash receipts from the bond.

“We have a bank that is strong, liquid, very stable, the two bonds that were issued, we received the cash for one bond in November, another bond that was issued for the second batch of the banks we’ve also received the cash for it. We stand with you,” he said.

He further said, “So far we have paid about GH¢2 billion in deposits but the interesting thing is that a lot of those deposits that are coming back because depositors are also saying that we like you as a bank, the fact that you are strong and liquid, and we want to continue to do business with you. So, we are not seeing a net outflow of funds. We are actually seeing a net inflow of funds to us.”

Background

The Central Bank announced the creation of Consolidated Bank Ghana (CBG) to take over some struggling banks in the country.

Sovereign Bank, Royal Bank, Beige Capital, Construction Bank and Unibank are five financial institutions that have run into liquidity challenges.

Subsequently, the operational licences of Heritage Bank and Premium Bank were also revoked by the central bank and their liabilities and selected assets also taken over by the CBG.

As part of efforts to ensure a resilient banking system, the government incorporated Consolidated Bank Ghana Limited and capitalised it with GH¢450 million.

The Consolidated Bank assumed selected assets and liabilities of some five banks whose licenses were revoked by the BoG and also provided financial support through the issuance of a bond.

The bond, GH¢5.76 billion, was issued towards the Purchase and Assumption Agreement under which Consolidated Bank Ghana (CBG) acquired all deposits and other specified liabilities, and good assets of the five banks.