Capital Bank was insolvent and had many non-performing loans before the collapse – Ato Essien told the court

Mr. Ato Essien revealed that the now defunct Capital Bank faced several financial challenges, including the misapplication of GH ¢ 620 million liquidity support from the Bank of Ghana before their license was revoked.

He said in court that Capital Bank was “below the capital adequacy ratio”.

When asked to explain what this meant, Mr Essien said “according to the Central Bank ratios we were insolvent”.

He was quick to add, however, that his bank would have survived if the BoG had given them the time and space to work things out.

“… this is a normal event” in the industry and would have been rectified by an “injection of more capital” into the bank; a “classification of bad debts”, and a recovery of the bad bank in excess of income “.

The besieged CEO also added that the insufficient capital ratio was the only problem the Capital Bank faced compared to the Bank of Ghana.

Capital Bank was one of the banks that collapsed after the massive cleanup of financial institutions by the Bank of Ghana (BoG) from 2017.

Mr. Essien and other defendants have been charged with theft, money laundering and conspiracy to steal.

The case was adjourned until November 25.