BoG downgrades GN Bank to Savings & Loans company

GN Bank has been downgraded by the Bank of Ghana to a Savings and Loans company after failing to meet the GHS400 million minimum capital requirement directive of the central bank by the 31 December 2018 deadline. 

Announcing the decision at a press conference, the governor of the central bank, Dr Ernest Addison, said: “Ladies and gentlemen, GN Bank was unable to comply with the minimum capital directive by 31 December 2018”.

“Consequently, the bank has applied for, and the Bank of Ghana has approved the grant of a Savings and Loans company licence.

“The bank has also approved the transition plan submitted by GN Bank for winding down aspects of its business which are not compatible with the Savings and Loans [licence].

“The Bank of Ghana will, hopefully, monitor the implementation of the approved transitional plan, which is expected to be completed by June 2019.

“In this regard, the bank has also appointed an Advisor for GN Bank pursuant to section 101 of the Banks and Specialised Deposit-Taking Act to advise the management of GN Bank to ensure a smooth transition to a viable Savings and Loans company. The Advisor will hold office until otherwise advised by the Bank of Ghana”, Dr Addison said.

Source: Ghana/ClassFMonline.com