Seventy (70) percent of the permanent staff of defunct UT and Capital Banks has been absorbed by the GCB, a statement from the financial institution has said. It has also dispensed the services of contract workers.

The statement from GBC said “As a result of the integration, staff numbers have been rationalized and GCB has absorbed almost 70 percent of the permanent staff of those banks.” The move follows the completion of the full integration of the systems of the two banks.

The statement said: “Departing employees are to be paid a month’s salary in lieu of notice plus any earned leave since August last year.”

The statement added, “The Bank in undertaking this exercise was mindful of its economic and social impact and therefore went to great lengths to strike the right balance in the interest of all stakeholders.” The GCB in 2017 took over the two banks.

The Bank also revoked their licenses because the two banks ‘’were deeply insolvent, meaning that their liabilities exceeded their assets, putting them in a position not to be able to meet their obligations as and when they fell due.

Despite repeated agreements between the Bank of Ghana and UT Bank and Capital Bank to implement an action plan to address these significant shortfalls, the owners and managers of UT Bank and Capital Bank were unable to increase the capital of the banks to address the insolvency,, an explanation from the Central Bank said.

The Bank of Ghana made efforts to help UT Bank and Capital Bank recover via private alternatives; however, the banks were unable to develop an acceptable plan. After exhausting all other alternatives, the BOG has chosen to resolve them via the least costly method of a Purchase and Assumption transaction to protect depositors’ funds, the statement issued in 2017 stated further.