The Bank of Ghana (BoG) has downgraded GN Bank into a Savings and Loans company.
By this, the bank owned by business man Dr. Papa Kwesi Ndoum has lost its banking license.
The Governor of the Bank of Ghana, Dr. Ernest Addison discloased this today [January 4, 2019] at a press conference.
Dr. Addison explained that GN Bank (GN) was unable to comply with the Minimum Capital Directive by 31st December 2018.
He stated that GN Bank consequently applied for, and has been granted a savings and loans company license which the central bank approved as well approved a transition plan for the bank.
“The Bank of Ghana has also approved a transition plan submitted by GN for winding down aspects of its business which are not compatible with a savings and loans company licence. The Bank of Ghana will closely monitor implementation of the approved transitional plan which is expected to be completed by the end of June 2019”.
“In this regard, the Bank of Ghana has appointed an advisor for GN pursuant to section 101 (1) of the Banks and Specialized Deposit-Taking Institutions Act of 2016 (Act 930), to advise management of GN with a view to ensuring a smooth transition to a viable savings and loans company,” he added.
Dr. Addison pointed out that the Advisor will hold office until otherwise advised by the Bank of Ghana and will furnish the Bank of Ghana with a status report on the GN in three months and as frequently as the Bank of Ghana may require.
Recent challenges of GN Bank
GN Bank was incorporated on May 30, 1997. The bank has in recent times faced liquidity challenges and is unable to meet depositors withdrawal.
Some workers in the Western region have complained that they are unable to withrawl their salaries that is channeled through the bank.
The owner of the bank, Dr. Papa Kwesi Nduom during the challenges assured customers that their funds are safe.
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By: Lawrence Segbefia/Pius Amihere Eduku/citibusinessnews.com/Ghana