Ghana’s central bank has appointed accounting firm KPMG as administrator for Unibank in order to save it from imminent collapse, Governor Ernest Addison said on Tuesday.
The move, which follows central bank liquidations of two other local banks last year, will prevent losses by depositors .
It will also prevent losses to other creditors and ensure it does not create further risks to the wider financial system, Addison told reporters.
Unibank had suffered persistent cash shortfalls and regularly fell below cash reserve requirements, he said.
“As a result, Unibank has relied extensively on liquidity support – over 2.2 billion cedis (498 million dollars) – from the Bank of Ghana over the past two years to meet its recurring liabilities,” he said.
Apart from poor governance and risk management practices, Unibank was also found to have misreported the state of its loan book, Addison said.
Unibank will remain open for business under the management and control of KPMG.
Oversight will be provided by the Bank of Ghana, until it is judged stable and can be returned to private ownership, he added. ($1 = 4.4165 cedis)