Databank Limited has taken over the Cape Coast branch of UT Bank following its collapse by the Bank of Ghana (BoG).
Last year, the banking sector shook following news that Capital Bank and UT Bank’s liabilities overwhelmed their assets and the Bank of Ghana (BoG) assumed the responsibility of their assets and revoked their licenses.
The collapsed banks were “unable to develop an acceptable plan”, according to the BoG, which indicated in a statement that it made efforts to help UT Bank and Capital Bank recover via private alternatives.
The Central Bank said there were “repeated agreements between the Bank of Ghana and UT Bank and Capital Bank to implement an action plan to address these significant shortfalls.”
However, the owners and managers of UT Bank and Capital Bank were unable to increase the capital of the banks to address the insolvency.
Purchase and Assumption agreement allowed GCB Bank to take over all deposit liabilities and selected assets of both UT Bank and Capital Bank, per section 123 of the Banks and Specialized Deposit-Taking Institutions (SDIs) Act, 2016 (Act 930).
The BoG in its statement said the GCB Bank took over UT Bank and Capital Bank “as part of efforts to extend their reach and grow their balance sheet to position them to support large transactions in a fast-growing economy.”
But rather than Ghana Commercial Bank (GCG), Databank Limited has assumed ejected and taken over the operations of the Cape Coast Branch of UT Bank.
The new office open in Cape Coast is part of e the new offices acquired in Ho in the Volta Region and the Central Region respectively by Databank countrywide since it started operations in Ghana.
The Ho can be located around Post Office, and on the same building with Barclay s Bank and the Exim Bank.