uniBank customers divided over bank's future

Customers of uniBank are divided over the future of the bank after the Central Bank of Ghana assumed its management Tuesday.

The Central Bank, as regulators, has handed over managerial powers of uniBank to the audit firm, KPMG to take over management for at least the next six months.

While some lauded the Central Bank for taking over the liquidity-stressed bank, others told Graphic Online Wednesday morning that the move was in the wrong.

Those against the move cited the total assumption of UT Bank and Capital Bank in August 2017 by the Central Bank and said with the developments at uniBank, there is a clear trend the local banking industry is sick.

Their fear is that as the indigenous banks go under, a not too far away future dominance of the industry avail foreign banks, much to the detriment of domestic players. 

UT Bank and Capital Bank were unable to turnaround their deteriorating liquidity positions, or so was the offered reason, which necessitated a Purchase and Assumption agreement for GCB Bank to take over all their business and selected assets.

uniBank was one of nine banks identified after an asset quality review exercise undertaken in 2016, to be significantly undercapitalized with a Capital Adequacy Ratio of 4.75%.

The Central Bank noted that uniBank’s problems were part of the legacy issues in the financial sector attributed to weak economic growth and poor corporate governance and risk management practices.

Shock

Speaking to Graphic Online in Accra on day one after the surprising announcement of BOG's takeover, customers expressed shock about the takeover, for in their view their bank was one of the best Ghanaian banks.

Mr Samuel Ackom, a customer said he had come to redraw his money from the bank since he did not know if the takeover was a precursor to a total collapse of the bank.

He was sure he was going to close his account with the bank.

Another customer, Mr. Kodjo Asare noted that the collapse of UT Bank, Capital Bank and now the taking over of uniBank was worrying and therefore urged the government not to kill the Ghanaian banks while the foreign banks are allowed to operate.

Mr. Frank Adu, also another customer, said all banks which do not conform to the directives of the Central Bank must be closed down.

He commended BOG for ensuring that banks in the country do not take citizens for granted.

Mr Evans Ofori who was coming to deposit at the bank was angry over the late notice by the bank, telling customers business was to open at midday. “I just got here to see the notice. I wanted to deposit money into a friends account but I will do that later. I hope this will not lead to job losses.”

A visit to some more branches of the uniBank yielded similar closed banking halls with notices telling customers management of the bank has been taking over by KPMG.

Security was strategically provided, and in some places agitated customers would not even talk to the media.