DOI: 10.36347/sjebm.2021.v08i06.004

Pages: 175-177

Indeed, the Ghanaian business community was saddened with news on August 14, 2017, that the licenses of two indigenous banks - UT Bank and Capital Bank have been revoked. This practically came as a surprise to me and the many ordinarily Ghanaian on the street who transacts business with these two banks. Additionally, the two banks had won numerous awards for performing well in the industry. The two banks were taken over by GCB Bank Ltd. In the 2011 Ghana Banking Awards, UT Bank was adjudged the Bank of the year. Capital Bank was also adjudged the Best Growing Bank, and Best Bank in Deposits & Savings in 2016. A press statement issued by Bank of Ghana (BoG) read in part as follows: “The Bank of Ghana has revoked the Licences of UT Bank Ltd and Capital Bank Ltd. This action has become necessary due to severe impairment of their capital. The two banks have high non-performing loans. UT Bank and Capital Bank 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”. Interesting, one subject that came to the media front was the discussion on corporate governance in these two banks. The case was further compounded when one of the board Chairmen asserted that he had nothing to do with the daily activities of the bank; reason been that, he was then a non-executive board member. Was he right to make such a proclamation as the board chairman of the bank or it was just an ignorance on his part or his duties were ambiguous to him then? Maybe, I believe, in appointing him as the Chairman of the bank, they should had remembered what Habakkuk 2: 2 asserted (NIV): Then the LORD replied: "Write down the revelation and make it plain on tablets so that a herald may run with it”. This paper assesses the corporate governance lapses in these two indigenous banks and way forward.