A research conducted by a former Head of the Department of Finance at the University of Ghana Business School, predicted UT bank’s collapse months before it folded.
The researchers– Professor Anthony Aboagye and Effa Ahinkrah showed in their report that some thirteen banks, including the UT Bank were on the verge of collapse.
According to the findings, most of the banks sampled did not diversify their loan portfolios; a situation the researchers said had the tendency to collapse those institutions.
Professor Aboagye while throwing more light on the research on the Citi Breakfast Show said they predicted imminent doom for some three banks which included a big bank in Ghana, but did not mention the names.
He however noted that Capital bank was not captured in the research because “they were fairly new and got their universal licence in December 2013 and we had started charting these banks as far back as 2011 so we did not include Capital in what we did simply because there was not enough data for them but UT bank, we did and it was one of them [predicted to collapse].”
Click below for audio of the full explanation on the Citi Breakfast Show: