Banking & Finance

UMB says on track to recapitalize before 2025 deadline

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Universal Merchant Bank (UMB) has assured the public and customers that it is on track to recapitalize to the new levels before the 2025 deadline set by the Bank of Ghana.

This was contained in a notice to its customers after the Bank of Ghana announced that it has appointed Dr. Joseph France, as an Advisor to help the bank meet the new capital levels and deal with some governance issues.

“As already known, as part of the post-Domestic Debt Exchange Programme recovery plan, all banks have been given up to December 2025 to restore their minimum paid-up capital. UMB is on track and its objective to achieve full recapitalization before the targeted deadline”, the bank said.

UMB in the notice to its customers also noted that it is resilient, and resolute to continue to work in their best interest.

The bank expressed appreciation for the appointment of Dr. France as an advisor and promised to work with him to recapitalize as soon as possible.

Background

The Bank of Ghana appointed, Dr. France, as an Advisor to advise the management of UMB, effective March 25, 2024.

This is according to the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930).

A statement from the Central Bank said the Advisor is expected to help monitor UMB’s recapitalization efforts and implementation of governance reforms agreed with the Bank of Ghana.

The statement pointed out that the Advisor will be at post at UMB until otherwise advised by the Bank of Ghana and will furnish the regulator with a status report on the bank as frequently as the Bank of Ghana may require.

“It is important to note that an Advisor, unlike an Official Administrator, does not take over the powers, responsibilities, and duties of the bank’s shareholders, directors, or management. Under Act 930, the Advisor may attend meetings of the Board of Directors or Committees of the bank without voting at such meetings”, it further stressed.

Under Act 930, the Advisor may attend meetings of the Board of Directors or Committees of the bank without voting at such meetings.

The Bank of Ghana added that it takes this opportunity to assure depositors and customers of UMB that the bank remains open for business under the control of UMB’s management team.

The Central Bank concluded that it remains committed to promoting a sound and resilient banking sector that retains the trust and confidence of the general public.

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