The Bank of Ghana has collapsed five banks into a Consolidated Bank of Ghana Limited.
The banks are BEIGE, Sovereign, Construction, UniBank and Royal Bank. This follows the insolvency of the four banks after investigations by Bank of Ghana.
The BoG Governor, Dr Ernest Addison announced this Wednesday afternoon.
the Consolidated Bank Ghana Limited is expected to help the government in economic development.
The government has also issued a bond totalling GHc5.6 billion to cater for bad assets of the four banks, Dr Addison said.
Explaining, the Governor said Unibank and Royal Bank were under capitalised and that those banks were beyond rehabilitation.
On Royal Bank, he said non-performing loans were high whilst Sovereign Bank's license, he said was granted under the suspicious activity.
Dr Addison said the consolidated banks will be headed by Simon Dornoo.
Speaking at a press conference, Dr Ernest Addison, revealed that Beige Bank and Construction Bank obtained their licenses under false pretence.
He however assured there would be no immediate job losses for the staff of the banks involved.