Man threatens to sleep in banking hall

 

A young man shocked staff and other customers of UniCredit, Apenkwa branch, in Accra, when he showed up at the bank with his mattress, pillow, bedspread, and other stuff to sleep at the banking hall.

According to the visibly distressed man, he saves with the bank’s Apenkwa branch but several attempts by him to withdraw his money were met with the response, “the service is down.”

So on Wednesday, October 17, 2018, the yet-to-be-identified young man stormed the bank with his mattress and other stuff, including his shoes, to sleep there until he gets his money.

Staff and other customers at the banking hall looked on shocked as they could not believe what was unfolding before their eyes.

Panic withdrawals have become rampant in Ghanaian banks, following the collapse of some seven local banks in the country.

The Bank of Ghana (BoG) recently merged five banks into the Consolidated Bank of Ghana Limited.

The banks were BEIGE, Sovereign, Construction, uniBank and Royal Bank.

It followed the insolvency of the five banks after investigations by the BoG.

The government also issued a bond totaling GHc5.6 billion to cater for bad assets of the four banks.

uniBank and Royal Bank, according to the BoG, were under-capitalised and that those banks were beyond rehabilitation.

On Royal Bank, it said, non- performing loans were high whilst Sovereign Bank obtained its license by false pretenses through the use of suspicious and non-existent capital.

 

Nii Amanor Dodoo of KPMG as the Receiver for the five banks heads the Consolidated Bank of Ghana.

BoG has over the last year rolled out measures to strengthen the financial system to protect the interests of depositors.

However, a number of legacy problems plague the banking sector including macroeconomic factors, poor corporate governance, and risk management practices, related party transactions that were not above board, regulatory non-compliance, and poor supervision, (questionable licensing processes and weak enforcement) leading to a significant build-up of vulnerabilities in the sector.

 

 

Story: Today Correspondent

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