UT and Capital Banks Collapse: Important Facts You Must Know


News broke this morning [Monday, August 14, 2017], that the Bank of Ghana (BoG) has revoked the licences of UT and Capital banks from operating as independent commercial banks in Ghana; a development that literally means the two banks have been closed down!

The news has since triggered a level of worry and anxiety among the populace regarding what the consequences of the two banks’s collapse could turn out to mean for them.

It is on this note that BuzzGhana is bringing you some of the most important details of the development in order to clear the doubts and as well supply answers to the very many arising questions. Read on…

Why The Licence Withdrawal?

The Bank of Ghana was forced to withdraw the operation licence of UT and Capital banks after the two banks became financially distressed. The UT Bank Ltd and Capital Bank Ltd became insolvent after their liabilities exceeded that assets overtime.

The two banks have severally failed to meet up with the deadline issued to them by the BoG, thereby forcing the Central Bank to revoke their licences. Consequently, the two banks will no longer transact businesses on their own.

The BoG’s action is in line Section 123 of the new Banking Act, which states that when a bank is in distress, the Bank of Ghana revokes its license, possess the bank, appoints a receiver and then put it up for sale.

The Ghana Commercial Bank (GCB) acquired the banks while PricewaterhouseCoopers (PwC) was appointed the receiver by BoG to manage the assets that were not taken over by GCB and as well work with customers to recover such assets.

A section of a press release from the BoG reads: “The remaining assets and liabilities will be realised and settled respectively through a receivership process to be undertaken by Messers Vish Ashiagbor and Eric Nana Nipah of PricewaterhouseCoopers (PwC)”.

Moreover, the Securities and Exchange Commission has indicated that it has removed the UT Bank from the Ghana Stock Exchange.

GCB Takeover

According to the BoG press release, the “Bank of Ghana has approved a Purchase and Assumption transaction with GCB Bank Ltd that transfers all deposits and selected assets of UT Bank Ltd and Capital Bank Ltd to GCB Bank Ltd”.



From the foregoing, staff and customers of both UT Bank and Capital Bank are now automatically working and banking with the Ghana Commercial Bank (GCB) respectively.

Branches of the two banks have also been rebranded to bear the name and logo of their acquirer – GCB. Rebranding of the banks’s properties and other transaction materials will also be effected as time goes on.

Meanwhile, the websites of both UT and Capital banks have been redirected to the Bank of Ghana page. The BoG has also made staff and customers of UT and Capital banks to know that there is no cause for alarm as both their jobs and money are safe. The Central Bank has as well ruled out fears that some other banks would be facing UT and Capital banks fate.

The Ghana Commercial Bank (GCB) Limited is the largest indigenous bank in Ghana, with an asset base of ¢6.3 billion. her acquisition of UT and Capital banks will see GCB taking over their 53 branches, thereby growing its network to 214 branches across the country.

About UT and Capital Banks

UT Bank is a commercial bank that has its headquarters in Ghana and its branches scattered across some parts of West Africa and Europe. The institution was established in 1997, as Unique Trust Financial Services – a non-bank financial service provider in Ghana.

Over time, the institution acquired subsidiaries and was listed on the Ghana Stock Exchange, under its holding company, UT Holdings Limited. The company in 2008, acquired majority shareholding in BPI Bank – a Ghanaian commercial bank called. Following this development, the bank was re-branded as UT Bank Ghana Limited and opened for business in May 2009.

Since the, the bank has been in operation as a commercial bank, with about 30 branches in the ten regions of Ghana until today being Monday, the 14th of August, 2017.

Capital Bank is an indigenous private national development and commercial bank in Ghana.   Previously First Capital Plus Bank, Capital Bank Ltd was founded by William Ato Essien on 29th October 2009 as a microfinance company.

The bank has about 18 branches across the country, and just like UT Bank, it has been rendering banking and financial services to the public until its licence was revoked today.