In: Finance
QUESTION
Over the last few months, the Bank of Ghana ( has cracked the whip
at the banking industry in a bid to restore sanity in the industry.
In August 2017, the UT and Capital Banks were liquidated for
failing to meet the bank of Ghana’s minimum capital ratio. The
operations of UniBank, Royal Bank, Beige Bank, Sovereign Bank, and
Construction Bank ended. In their place the bank of Ghana announced
a new bank called the Consolidated Bank, as part of measures to
ensure the banking sector maintains a strong indigenous
presence.
The bank of Ghana statement on closure of the banks said
an Asset Quality Review of banks conducted in 2015 and 2016 found
that some indigenous banks had inadequate capital, high levels of
non-performing loans, and weak corporate governance which compelled
bank of Ghana to crack the whip.
REQUIRED:
As a manager of a bank that was not closed down, what measures will
you put in place to ensure that your bank will not be caught up in
the same situation as the collapsed banks?
Ans: