{"id":13759,"date":"2024-06-11T15:24:33","date_gmt":"2024-06-11T15:24:33","guid":{"rendered":"https:\/\/sotnews.agency\/?p=13759"},"modified":"2024-06-13T19:47:24","modified_gmt":"2024-06-13T19:47:24","slug":"bank-of-ghana-stands-by-decision-for-revoking-license-of-gn-savings-loans","status":"publish","type":"post","link":"https:\/\/sotnews.agency\/?p=13759","title":{"rendered":"Bank of Ghana stands by decision for revoking license of GN Savings & Loans"},"content":{"rendered":"
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\n \t<\/i> Read Time:<\/span>2 Minute, 54 Second <\/div>\n\n <\/div>

The Bank of Ghana (BoG) has justified its decision to revoke the license of GN Savings and Loans.<\/strong><\/p>\n

The Director of Communications at the Bank of Ghana Bernard Otabil provided the justification while dismissing claims by the Chairman of Group Nduom, Dr Papa Kwasi Nduom that the central bank was influenced by former Finance Minister Ken Ofori-Atta to collapse the GN Savings and Loans.<\/p>\n

Mr Otabil stated that GN Saving and Loans violated the financial regulations including the\u00a0 Foreign Exchange Act of 2006 (Act 723).<\/p>\n

\u201cAt the end of the day, it is not in the interest of the central bank or we don\u2019t go out there and say this institution must actually be closed down at all cost.\u00a0 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.<\/p>\n

Read the reason why the Bank of Ghana revoked the license of GN Savings and Loans here<\/a><\/p>\n

\u201cFor 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,\u201d he told TV3\u2019s Paa Kwasi Asare.<\/p>\n

In 2019, the\u00a0Bank of Ghana<\/a>\u00a0revoked the licenses of 23 savings and loans companies and finance house companies, which included the GN Bank. The bank subsequently sought legal action challenging the revocation of GN Savings and Loans\u2019 license by the\u00a0Bank of Ghana<\/a>.<\/p>\n

But in January of this year, an Accra High Court presided over by Justice Gifty Addo Adjei upheld the legality of the Central Bank\u2019s decision, emphasizing the institution\u2019s right to revoke the license due to governance deficiencies that rendered GN Savings and Loans unable to meet its debt obligations.<\/p>\n

Dr Nduiom had stated that Mr Ofori-Atta petitioned Cabinet to facilitate the collapse of GN Bank to prevent any political interference.<\/p>\n

\u201cI have with me here a memorandum submitted by the Minister of Finance at that time, Mr.\u00a0Ken Ofori-Atta<\/a>, asking Cabinet to agree for GN Bank to be collapsed, for its license to be taken. This memorandum didn\u2019t consider that this bank was the biggest bank with the widest distribution in Ghana.<\/p>\n

\u201cIt didn\u2019t recognize that we were providing banking services that increased financial inclusion in Ghana. It didn\u2019t recognize that we were supporting financial development and economic development in Ghana.<\/p>\n

\u201cIt just said, these people are causing us problems and therefore it might affect our political chances, so let\u2019s shut it down,\u201d Dr. Paa Kwesi Nduom claimed in a viral video shared on X formerly Twitter.<\/p>\n

He acknowledged that, although the memorandum was presented to the cabinet, the cabinet did not consent to\u00a0Ken Ofori-Atta<\/a>\u2018s request to revoke the bank\u2019s operating license.<\/p>\n

Nduom, two other GN Bank shareholders win at the Supreme Court<\/a><\/p>\n\n

The post Bank of Ghana stands by decision for revoking license of GN Savings & Loans<\/a> first appeared on 3News<\/a>.<\/p>

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The Bank of Ghana (BoG) has justified its decision to revoke the license of GN Savings and Loans. The Director of Communications at the Bank of Ghana Bernard Otabil provided… <\/p>\n","protected":false},"author":1,"featured_media":14212,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"yes","rop_publish_now_accounts":{"facebook_2277560469115098_106292521332774":"","twitter_aToxNzczMzI3Njk4OTg4ODUxMjAxOw==_1773327698988851200":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[12],"tags":[],"class_list":["post-13759","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/13759","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13759"}],"version-history":[{"count":1,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/13759\/revisions"}],"predecessor-version":[{"id":14213,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/13759\/revisions\/14213"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/media\/14212"}],"wp:attachment":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13759"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13759"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13759"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}