The Director of Communications for the Bank of Ghana (BoG) has addressed recent concerns by confirming that the Central Bank provided significant support to GN Bank during its liquidity issues.
He explained that the BoG collaborated closely with GN Bank, especially after GN Bank’s request to be reclassified as a Savings and Loans institution.
The decision to revoke the licence of GN Savings and Loans was described as a necessary measure to safeguard the integrity of the banking industry.
“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,” Mr Otabil said.
Adding “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ensure an orderly exit of the company and protect the sanctity of the banking sector, the company’s licence had to be withdrawn in accordance with the provisions of the Banks and Specilised Deposit-Taking Institutions, Act 2016 (Act 930)”.
Mr. Otabil emphasized that the BoG has detailed the infractions that led to the revocation of GN Savings and Loans’ licence.
GN Bank, unable to meet the revised minimum capital requirement of GHS400 million by December 31, 2018, sought reclassification to a Savings and Loans company, which the BoG approved.
However, by August 2019, the BoG had to revoke the Savings and Loans licence after continued liquidity problems and customer complaints were brought to the attention of the Financial Stability Department.