Revocation of licences of UT, Capital banks were strict requirements from IMF – Dr. Addison

Dr. Ernest Addison, Governor of the Bank of Ghana, revealed that the banking sector faced significant challenges when he assumed office in 2017, with the IMF recommending reforms, including the revocation of UT Bank and Capital Bank licenses. These measures were implemented as part of prior actions required by the IMF to secure Ghana's financial support.

Speaking at the Chartered Institute of Bankers’ Governor’s Day dinner, Dr. Addison explained that revoking the licenses, though unprecedented and shocking to many Ghanaians, was necessary to stabilize the financial sector. The reforms, he noted, strengthened banks against external shocks like COVID-19 and the Russia-Ukraine war.

Dr. Addison attributed the collapse of UT and Capital Bank to poor corporate governance and stressed that effective governance is essential for minimizing risk and enhancing economic performance.