The Bank of Ghana (BoG) has appointed Dr. Joseph O. France as an Advisor to Universal Merchant Bank LTD (UMB).
This appointment, in accordance with section 101(1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), aims to bolster UMB’s recapitalization efforts and ensure the effective implementation of governance reforms.
In a press release issued on March 28, 2024, the BoG said Dr. France’s role as Advisor will involve closely monitoring UMB’s recapitalization process and overseeing the execution of reforms agreed upon with the Bank of Ghana. His expertise will be instrumental in safeguarding the interests of depositors, shareholders, and the general public. Importantly, it is essential to note that unlike an Official Administrator, Dr. France will not assume the powers, responsibilities, or duties of UMB’s existing management team.
Under Act 930, Dr. France will have the privilege of attending meetings of UMB’s Board of Directors and Committees, although he will not participate in voting. His primary focus will be on providing strategic guidance and ensuring compliance with regulatory requirements.
The Bank of Ghana press release emphasized that UMB remains fully operational and open for business under the control of its existing management team. It urged depositors and customers to continue to rely on UMB’s services with confidence.
Background
It will be recalled that the Bank of Ghana gave banks up to the end of September 2023 to provide their recapitalization plans. This was to ensure that banks whose capitals are below the minimum capital requirement build it up to GH¢400 million.
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