The Board of Universal Merchant Bank Limited (UMB) has welcomed the appointment of an advisor to assist the Bank’s recapitalisation process.
The Bank of Ghana (BoG) has appointed its former Head of Financial Stability, Dr. Joseph O. France, to support UMB’s management, monitor the Bank’s recapitalisation drive, and oversee governance reforms agreed upon with the Central Bank.
However, 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.
Dr. France may attend meetings of the Board of Directors or Committees of the bank but cannot vote at such meetings.
Banks across the country were given up to the end of September 2023 to provide their recapitalisation plans which required that banks whose capitals were below the minimum capital requirement quickly built it up to GH¢400 million as proposed by the Central Bank.
UMB is one of three banks in Ghana that have not yet fully recapitalised. However, over half of the country’s 23 banks have already fully met the new capital requirement.
Others have made significant progress, reaching over two-thirds of the target within the three-year period.
The Board’s statement also assured the bank’s “cherished customers, all other stakeholders, and the general public that the Bank is resilient and resolute with an unwavering commitment to continue to work in their best interest.”
UMB is a full-service financial institution specializing in customised banking products and services. It is a leading Ghanaian indigenous bank with considerable financial expertise.
The Bank is recognised for its entrepreneurial approach, innovative use of technology and distinctive banking solutions.
Currently, it has thirty-five (35) branches, three UMB Centres for Businesses, 1 UMB PPP Incubator Centre, and a vast network of ATMs dotted across the country.
Read the Board’s statement below:
The Board of Universal Merchant Bank Ltd (UMB) hereby acknowledges the appointment of Dr. Joseph France as an Advisor to support the Bank in its recapitalization drive as contained in Bank of Ghana’s press release dated 28th March 2024.
As already known, as part of the post DDEP recovery plan all banks have been given up to December 2025 to restore their minimum paid-up capital. UMB is on track and is its objective to achieve full recapitalisation before the targeted deadline.
The Board therefore is appreciative to the Bank of Ghana for the effort to support the Bank with the appointment of Dr. France for the above-stated purpose.
UMB wishes to assure its cherished customers, all other stakeholders, and the general public that the Bank is resilient and resolute with an unwavering commitment to continue to work in their best interest. The appointment of the Advisor will therefore be complementary to the above commitment.
The Board and Management assures Dr. France of its commitment to work closely on speeding up and concluding the recapitalization process within the stipulated period.
Source: myghanadaily
