Over the last few months, the Bank of Ghana (BoG) has cracked the whip at the banking industry in a bid to

restore sanity in the industry. In August 2017, the UT and Capital Banks were liquidated for failing to meet

the BoG’s minimum capital ratio. The operations of UniBank, Royal Bank, Beige Bank, Sovereign Bank, and

Construction Bank ended. In their place the BoG announced a new bank called the Consolidated Bank, as part

of measures to ensure the banking sector maintains a strong indigenous presence.

The BoG’s statement on closure of the banks said an Asset Quality Review (AQR) of banks conducted in

2015 and 2016 found that some indigenous banks had inadequate capital, high levels of non-performing

loans, and weak corporate governance which compelled BoG to crack the whip.

REQUIRED:

As a manager of a bank that was not closed down, what measures will you put in place to ensure that your

bank will not be caught up in the same situation as the collapsed banks?