Video: What led to Construction Bank's closure

The Governor of the Bank of Ghana (BoG) has disclosed the reasons for the solvency of the five banks which have been taken over.

Dr Ernest Addison revealed at a press conference Wednesday that three of the five banks obtained their banking licenses by false pretenses.

Beige Bank, Construction and Sovereign Bank’s licences “was obtained by false pretences through the use of suspicious and non-existent capital,” he said.

Below is the reason behind Construction Bank's closure:

According to the BoG: “Construction Bank was granted provisional licenses in 2016 and launched in 2017. Subsequent investigations conducted by the Bank of Ghana, revealed that similar to the case of Sovereign Bank, both banks obtained their banking licences under false pretenses through the use of suspicious and non-existent capital, which has resulted in a situation where their reported capital is inaccessible to them for their operations.”

Watch the video below:

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