Breaking News: GN Bank loses banking licence; BoG has downgraded it to a Savings and Loans company

January 4, 2019 5:21 PM

GN Bank (the people's bank) has lost its licence to operate in Ghana as a Bank. This is because the Bank of Ghana has downgraded it from a Bank status to Savings and Loans company.

GN Bank loses banking licence

The central bank has arrived at this decision after finishing what it describes as the banking resolution requiring each commercial bank operating in the country to have a minimum capital of ¢400 million.

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It announced the decision at a news conference in Accra on Friday where its governor, Dr Ernest Addison said Vish Ashiagbor of the international audit firm Pricewaterhouse Coopers has been appointed an advisor for GN Bank to ensure a smooth transition to a micro-finance company.

The governor also confirmed earlier reports that Stanbic Bank will now take over deposits of customers of the Bank of Baroda.

He further revealed that the operating licences of Premium Bank and Heritage Bank have now been revoked over various issues including low capital.

The capital adequacy ratio of Premium Bank, for example, was found to be negative 125%.

As a result, selected assets and liabilities of the Premium Bank and Heritage Bank will now be transferred to the Consolidated Bank.