GN Bank now a savings and loans company

The Bank of Ghana has approved the grant of a savings and loans company licence to GN Bank (GN), following the bank’s inability to meet the Minimum Capital Directive of GH¢400 million by December 31, 2018.

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,” Dr Ernest Addison, the Governor of the Bank of Ghana announced this at a press conference to provide updates of the banking reforms.

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.

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.

The BoG on September 11, 2017 issued the Minimum Capital Directive by which all universal banks were required to increase their minimum paid-up capital to GH¢400 million by December 31, 2018.

Banks were required to comply with the new minimum paid-up capital requirement through a fresh capital injection, capitalisation of income surplus, or a combination of fresh capital injection and capitalisation of income surplus.

Source: GNA