Shareholder loans account for GH¢749 million of the GH¢1.2 billion Capital Bank loans – BoG

Shareholders owe 65% of Capital Bank loans, BoG

Loans owed Capital bank 44% of its assets, BoG

Cash counted GH¢2.4m from Capital Bank lower than reported amount

The BoG has indicated in its inventory report on defunct Capital Bank that loans and advances owed the bank by its stakeholders amounted to GH¢749 million of the GH¢1.2 billion total Capital Bank loans and advances.

According to Bank of Ghana (BoG), the GH¢749 million owed by shareholders of Capital Bank constituted 65 percent of the total loans and advances owed the bank and had been in default for over three years.

The inventory report which was conducted by the Receivers of Capital Bank, Vish Ashiagbor and Eric Nana Nipah added that the GH¢1.2 billion loans and advances constituted 44 percent of the total assets of the bank as of August 14, 2017.

“The revised asset position of Capital Bank as of 14th August 2017 was approximately ¢1.2 billion. We continue to review the bank’s records to ascertain its accurate asset position,” the report said.

“The total assets of Capital Bank were approximately ¢2.6 billion as of 14th August 2017. However, from our initial assessment and Asset Quality Review we have adjusted the value of Capital Bank’s Assets to approx. ¢1.2 billion. This value includes asset balances purchased by GCB per the Purchased and Acquisition Agreement,” the report added.

The report further stated that contrary to the Management Account and General Ledger of Capital Bank cash counted on the day after the liquidation was approximately GH¢17.1 million and not GH¢19.5 million.

“On day one, we performed a physical count of cash held in vaults at the bank’s head office and branch network (25 branches). This was done in conjunction with GCB and Bank of Ghana (BoG) representatives. Total cash counted was the cedi equivalent of ¢17.1m.

"The cash counted was approximately ¢2.4 million, lower than the ¢19.5 million stated in the Management Account and General Ledger,” the BoG said.

“The cash was handed over on 14th August 2017 following a sign-off of count sheets by GCB and BoG representatives,” the report added.

See the full inventory report below: