‘We stand by our decision’ – BoG on collapse of GN Savings & Loans

Bank of Ghana was reacting to a recent video by the Chairman of Group Nduom, Dr Papa Kwasi Nduom, who said that the collapse of his bank was orchestrated by former Finance Minister, Ken Ofori-Atta, because he [Ofori-Atta] felt threatened by the bank.

The Director of Communications at the Bank of Ghana, Bernard Otabil, explained that the Central Bank was justified in its decision to revoke the license of GN Savings and Loans.

Otabil indicated that the license of GN Savings and Loans Bank was revoked for violating the financial regulations including the Foreign Exchange Act of 2006 (Act 723).

“At the end of the day, it is not in the interest of the central bank or we don’t go out there and say this institution must actually be closed down at all cost. It depends on how the institution is run, it depends on what the institution itself has stated that it wants to do and on respecting the prudential norms. In fact, let me make it clear that the GN Bank and GN Savings and Loans were actually disrespectful to the central bank.

“For instance, if you go through the books you will see that there was a transfer of dollars, and pounds and Euros to International Business Solutions which is an institution affiliated to the group network based outside which was in direct breach of the Foreign Exchange Act of 2006 (Act 723). These provisions are there. Our statement of August 16 2019, we stand by that statement and in that statement, we have given all the reasons behind the revocation of the license of GN Savings and loans,” he said in a report on 3news.com.