Indigenous bank, GN Bank, has been downgraded to savings and loans company by the Bank of Ghana for its failure to raise the new 400 million-cedis minimum requirement.
Governor of the Bank of Ghana, Dr. Ernest Addison announced Friday that the commercial bank licence of GN Bank has been revoked and an advisor appointed for the GN bank to help it go through the transition from commercial bank to a savings and loans company.
The advisor is also to guide the GN Bank to manage its current funds and ensure it adopts prudent banking management measures.
Customers of the indigenous bank have for months been struggling to withdraw monies from their accounts while others have had their investment with the bank locked up.
“The GN Bank was unable to comply with the minimum capital directive by 31st December 2018. Consequently GN Bank has applied for and the Bank of Ghana has approved the grant of a savings and loans company licence,” Governor of BoG, Dr Ernest Addison revealed at a news conference Friday.
He said BoG has approved a transition plan submitted by GN for winding down aspects of its businesses 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,” Dr. Addison said.
Even though the bank had attempted merger talks with Heritage and Premium Bank but was eventually abandoned in July 2018 over a misunderstanding.
When time was running out for banks to recapitalize, government announced it was working out a liquidity support for some. It was the expectation of many that GN was going to benefit from such support.
With the downgrading of the Bank, it ceases to be a universal commercial bank.
By PD Wedam| 3news.com|Ghana