Bank of Ghana has revoked the license of two commercial banks – UT Bank and Capital Bank – as these banks have been found to be unable to turn around their negative capital adequacy position. The central bank feels the continued encouragement of the operations of these institutions could endanger the banking industry and hence the action. The regulator was forced to take this action based on provisions of the current Banking and Specialized Deposit Taking Institutions Act. Legally the two banks now cease to exist and the central bank is likely to take over the assets and liabilities of these two banks.
