Sources have revealed that Construction Bank is expected to fold up by the end of August 2018. The closure is subject to the Central Bank’s approval.
it says an official notification has been sent to the regulator to approve the closure.
Why?
Sources say the move has been influenced by some challenges in meeting the new capital requirement of GH¢400 million by the close of this year.
It is understood that a Board meeting held earlier this week finalized the decision to fold up.
According to the source, communication has already been sent out to customers on how to pay back their deposits to them.
it added that, there has been an arrangement in place to ensure that this action does not disrupt the banking sector.
Sources say the fold up has nothing to do with liquidity challenge or solvency, but just purely on shareholders decision, resulting in a regulatory action.
When did construction bank start business?
The Construction Bank last year secured approval from the Bank of Ghana (BoG) to operate as a Universal Bank.
The Bank is a wholly Ghanaian-owned company that provided banking services in project finance, commercial and consumer banking with specialization in construction, infrastructure and mortgage financing.
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