The Bank of Ghana’s Director of Communications Mr. Bernard Otabil has explained that the central bank collaborated closely with GN Bank to address its financial difficulties and support its recovery.
According to him, The revocation of GN Savings and Loans’ license was a necessary step, based on thorough evaluation, to uphold the highest standards and protect the banking sector’s reputation.
He said “We tried to take our time with the case of GN Bank. When depositors started shouting all over the country because the Savings and Loans company could not meet depositors withdrawals it was time to act,”
“Aside from the reported cases in the media, the Financial Stability Department of the Bank of Ghana received complaints of the company’s inability to pay their deposits on demand. To ensure an orderly exit of the company and protect the sanctity of the banking sector, the company’s licence had to be withdrawn in accordance with the provisions of the Banks and Specialized Deposit-Taking Institutions, Act 2016 (Act 930)”. Mr. Bernard Otabil added.
Mr. Otabil pointed out that the Bank of Ghana has disclosed the specific violations that led to the revocation of GN Savings and Loans Company’s license.
Although GN Bank failed to meet the required minimum capital of GHS400 million by December 31, 2018, it successfully applied to be reclassified as a Savings and Loans Company.
However, the Bank of Ghana ultimately revoked the license in August 2019 due to the company’s ongoing liquidity issues, customer complaints, and agitation, which were reported to the Financial Stability Department.
Story by: Michael Seh