Premium, Heritage banks’ licenses revoked; merged with Consolidated bank

The Bank of Ghana (BoG) has revoked the licences of Heritage Bank and Premium Bank.

The central bank has also approved a purchase and assumption agreement with Consolidated Bank Ghana Limited (CBG) to take over the liabilities and selected assets of the two local banks.

This was announced by central bank Governor Dr Ernest Addison at a press conference in Accra on Friday, 4 January 2018.

Premium Bank, according to Dr Addison, was found to be insolvent and had a capital adequacy ratio of “-125.2%” while Heritage Bank, he said, “Obtained its licence with questionable sources of capital”.

He added that both banks also failed “to meet the minimum capital requirement.”

The BoG gave banks up to 31 December 2018 to recapitalise to GHS400 million.

Source: Ghana/ClassFMonline.com