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Beige, Construction, & Sovereign Banks operations were illegal – BoG

By Hagar Ofosua
Beige

The Beige Bank, Construction Bank and the Sovereign Bank which have been consolidated obtained their banking licenses by false pretences.

The bank of Ghana on August 1, 2018, consolidated the three banks named above and 2 other banks namely, Royal bank and uniBank. Speaking at a Press conference the Governor of the Bank of Ghana, Dr Ernest Addison noted, Sovereign bank obtained its licenses under false pretence.

“In the case of Sovereign Bank Limited, as part of Bank of Ghana’s investigations into the failure of Capital Bank Limited (currently in receivership), it emerged that Sovereign Bank’s licence was obtained by false pretences through the use of suspicious and nonexistent capital, which has resulted in a situation where their reported capital is inaccessible to them for their operations,”

 He added another reason for the consolidation is due to the inability of Beige, Construction, & Sovereign Banks to meet the GHc400million capital requirement. 

The Bank of Ghana gave the banks in Ghana until the end of 2018 to raise a GHc400 million new capital requirement or risk being shut down or becoming a microfinance or savings and loans institutions.

Sovereign Bank Limited was licensed as a universal bank in January 2016 and began operations in April 2016.

Construction Bank was licensed in May 2017 and commenced operations in December 2017.

The Beige Bank commenced banking operations in December 2017 after previously operating as a savings and loans company.

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