Dr. Joseph O. France has been appointed by the Bank of Ghana (BoG) to the position of Management Advisor for Universal Merchant Bank Ltd. (UMB).
Dr. France was the Bank of Ghana’s previous head of financial stability.
His responsibilities will include monitoring UMB’s recapitalization efforts, providing advice to the management, and supervising governance improvements that have been agreed upon with the Bank of Ghana.
Section 101(1) of the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930) governs the appointment.
He will remain on duty at UMB unless instructed distinctly by the Bank of Ghana, and he will provide the bank with status reports on an as-needed basis.
It’s crucial to remember that, in contrast to an Official Administrator, the advisor does not take on the authority, duties, or responsibilities of UMB’s shareholders, directors, or management, even though they will still provide regular status reports to the Bank of Ghana.
In a statement, the Bank of Ghana gave depositors and customers of UMB the reassurance that the bank is still operational and run by the management team of UMB.
“Under Act 930, the Advisor may attend meetings of the Board of Directors or Committees of the bank without voting at such meetings”, portions of the statement read.
Recapitalization
The Bank of Ghana gave banks up to the end of September 2023 to provide their recapitalization plans.
This was to ensure that banks whose capitals are below the minimum capital requirement quickly build it up to GH¢400 million as proposed by the Central Bank.
Currently, over half of the 23 banks in the country have fully recapitalized, as disclosed by Dr. Ernest Addison, the Governor of the Bank of Ghana.
This indicates progress in meeting regulatory requirements and strengthening the financial stability of the banking industry as the 2025 deadline draws near.
The banks that haven’t fully met the capitalization requirements have made significant strides, meeting more than two-thirds of the required recapitalization over three years.
This suggests a concerted effort within the banking sector to comply with regulatory standards and enhance their financial health.
SOURCE: Citinewsroom
