Papa Kwesi Nduom’s GN Bank, a subsidiary of the Groupe Nduom, has been downgraded to a savings and loans company by the Bank of Ghana (BoG) following its inability to meet the Minimum Capital Directive of GH¢400 million by 31st December 2018.
The Central Bank has also granted a transition plan submitted by GN for winding down aspects of its business, which are not compatible with a savings and loans company licence.
“The Bank of Ghana will closely monitor [the] implementation of the approved transitional plan, which is expected to be completed by the end of June 2019,” the Governor of the BoG, Dr Ernest Addison, stated at a press conference yesterday to provide updates of banking reforms.
BoG has appointed an advisor for GN, pursuant to section 101 (1) of the Banks and Specialised Deposit-Taking Institutions Act of 2016 (Act 930), to advise the management of GN with a view to ensuring a smooth transition to a viable savings and loans company.
Until otherwise advised by the BoG, the Advisor will hold office and furnish the Central Bank with a status report on GN Bank in three months and as frequently as the BoG may require.
On September 11, 2017, the BoG issued the Minimum Capital Directive by which all universal banks were required to increase their minimum paid-up capital to G GH¢400 million by 31st December last year.
Banks were mandated to adhere to the new minimum paid-up capital requirement through a fresh capital injection, capitalisation of income surplus, or a combination of fresh capital injection and capitalisation of income surplus.
By Maxwell Ofori / www.thechronicle.com.gh