The Bank of Ghana(BoG), has downgraded GN Bank to a Savings and Loans company.

By this, the bank, owned by businessman Dr. Papa Kwesi Ndoum, has lost its banking license.

The Bank of Ghana made the announcement on Friday, January 4, 2019.

According to the governor of the central bank, Dr. Ernest Addison, GN Bank had failed to meet the GHS 400 million minimum capital requirement by the 31st December 2018 deadline.

GN Bank was incorporated on May 30, 1997. The bank has in recent times faced liquidity challenges and is unable to meet withdrawal demands of depositors.

While other banks that were struggling to meet the requirement received support from the government, Premium Bank and Heritage Bank were declared insolvent and have been taken over by Consolidated Bank Ghana.

With regards to Heritage bank, the Governor said it “obtained its license with questionable sources of capital adding that both banks have not also been able “to meet the minimum capital requirement.”

Dr. Addison said the now-defunct Heritage Bank will thus be further investigated.

The Bank of Ghana announced that it has appointed a receiver for the two banks, Vish Ashiagbor of PricewaterhouseCoopers.

The country will not have 23 banks from the 34 that were previously operating in the country.

In 2017, two banks were declared highly insolvent and their licenses were revoked, while five others also had their licenses revoked in 2018.

 

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By: citibusinessnews.com | Ghana