Lack of Loan Recovery cause of UT and Capital Banks Fold up

It has emerged that unpaid loans by international companies are the cause of the callapse of the UT Bank and Capital Bank, according to law lecture  at Ghana Institute of Public Adminstration (GIMPA).
According to Clara Kasser-Tee, the takeover of the two banks by Government of Ghana maybe as a result of unpaid loans foreign companies.
“Banks in Ghana prefer given loans to international firms to grow their businesses than locals”, she observed.
“If you look at the history of Banks in the country, you will realize that the Banks like giving loans to international businesses”, she revealed.
The tax law lecturer who spoke on an Accra based radio station indicated that, she did have not all the facts as to what exactly caused the fold up of the two banks.
“When i heard the announcement i did not make judgement on one way or other precisely because the facts [then] were insufficient”, Lawyer Clara Kasser-Tee confessed.
“Looking at the recent history of DKM, i was happy  that at least if there were risk to depositors fund, the regulator was proactive in trying to secure depositors fund”
According to her, “the regulator followed laid down procedures and applicable rules” to ensure customers of the two banks do not loose their money as happened to DKM customers.
“With respect to securing depositors’ deposit it is a good thing to always move to protect the industry and to also protect depositors’ banks”, she pointed out during a panel discussion.
“I believe that if there is anything untoward, the affected companies  know what to do”, Lawyer Clara Kassar-Tee added.
Source: Danso-Dapaah
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