BoG revokes licenses of 23 savings and loans companies, finance houses

The Bank of Ghana has with immediate effect revoked the licences of twenty-three (23) insolvent savings and loans companies and finance houses.

The central bank in a statement on Friday said the revocation of the licences of these institutions has become necessary because they were insolvent even after they were given a reasonable period of time to recapitalize.

“It is the Bank of Ghana’s assessment that these institutions have no reasonable prospects of recovery, and that their continued existence poses severe risks to the stability of the financial system and to the interests of their depositors,” the statement added.

BoG in the statement also explained that the actions “were taken pursuant to Section 123 (1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), which requires the Bank of Ghana to revoke the licence of a Bank or Specialised Deposit-Taking Institution (SDI) where the Bank of Ghana determines that the institution is insolvent.”

The Bank of Ghana also appointed Mr. Eric Nipah as a Receiver for the specified institutions in line with section 123 (2) of Act 930.

Some of the affected companies include: GN Savings and Loans Ltd, Ideal Finance Ltd, Unicredit Savings and Loans Ltd, Global Access Savings and Loans Company Ltd, Accent Financial Services Ltd, Midland Savings and Loans Company Ltd, First Allied Savings and Loans Co. Ltd.

Licenses of 137 Microfinance companies revoked 

The Bank of Ghana on Friday, May 31, 2019 revoked the licenses of some 347 microfinance institutions in the country.

It also took similar action against some 39 microcredit institutions operating in Ghana.

The central bank in a statement said the institutions whose licenses were revoked were either insolvent or had ceased operations.

The Bank of Ghana in a statement at the time explained that new measures have been put in place to ensure that existing institutions remain structurally and administratively safe enough to continue with their businesses by complying with the rules.