Find out the status of your Bank: GN Bank now savings and loans company

The Bank of Ghana has downgraded GN Bank to a savings and loans company.

This was after the Central Bank finished what it describes as the banking resolution requiring each commercial bank operating in the country to have a minimum capital of ¢400 million.

At a news conference in Accra Friday, BoG Governor Dr Ernest Addison said an advisor has been appointed for GN Bank to ensure its smooth transition to a micro-finance company.

“GN Bank (GN) was unable to comply with the Minimum Capital Directive by 31^st December 2018. Consequently, GN Bank has applied for, and the Bank of Ghana has approved the grant of a savings and loans company licence. The Bank of Ghana has also approved a transition plan submitted by GN for winding down aspects of its business which are not compatible with a savings and loans company licence,” he said.

According to him, BoG will closely monitor implementation of the approved transitional plan which is expected to be completed by the end of June 2019.

He added that “ the Advisor will hold office until otherwise advised by the Bank of Ghana and will furnish the Bank of Ghana with a status report on the GN in three months and as frequently as the Bank of Ghana may require.”

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

Dr Addison also revealed that the operating licenses of Premium Bank and Heritage Bank have now been revoked over various issues including low capital.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.

He said 16 banks – Ecobank, Zenith, GCB, Standard Chartered, Stanbic, Fidelity, UBA, Barclays, Access, Consolidated, CAL, FNB, Republic, Societe General, GT Bank and the Bank of Africa – have so far met the minimum capital requirement as at December 31.

Three banks – First Atlantic Merchant Bank/Energy Commercial Bank, Omni Bank/Bank Shael Sahara and First National Bank/GHL Bank – have also received the blessing of the Central Bank to merge.

Five indigenous banks – ADB, NIB, Omni/BSIC, UMB and Prudential – will be benefiting from government GAT initiative with the Bank of Baroda existing and transferring its customers to Stanbic Bank 

credit: myjoyonline.com