Video: What led to Sovereign 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 Sovereign Bank's closure:

“In the case of Sovereign Bank Limited, as part of Bank of Ghana’s investigations into the failure of Capital Bank Limited (currently in receivership), it emerged that Sovereign Bank’s licence was obtained by false pretenses through the use of suspicious and nonexistent capital,” the Bank of Ghana boss, Dr. Ernest Addison stated at a press conference on Wednesday.

Watch the video below:

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