BoG dismisses claims of GN Bank license restoration

The Bank of Ghana (BoG) has ruled out restoring the banking license of GN Bank, which was downgraded to GN Savings and Loans Company Limited before its license was revoked.

According to the Governor of the Bank of Ghana, Dr Johnson Asiama, the Supreme Court had settled the case, leaving no room for further regulatory or legal reconsideration.

The clarification follows social media reports claiming that the Bank of Ghana had restored GN Bank’s license.

Speaking in an interview with Graphic Online, as sighted by GhanaWeb Business, Dr Asiama defended the central bank’s decision to revoke GN Bank’s license in 2019.

He explained that the move was justified due to multiple regulatory breaches.

FLASHBACK: 'We perform our job with humility' - BoG

“There is a Supreme Court ruling on that matter. The review also failed. So, nothing can be done. We are, however, open to considering applications for a new license from anyone who is not connected to the directors of the defunct GN Savings and Loans Company Ltd,” he said.

GN Bank’s license was revoked in 2019 as part of the central bank’s efforts to protect depositors’ funds and stabilise the country’s financial sector.

The revocation came after the bank failed to comply with financial regulations, which undermined its operational capabilities.

The bank fell short in areas such as capital adequacy, liquidity, and risk management controls.

The collapse of GN Bank/GN Savings and Loans Company Ltd formed part of the broader banking sector clean-up exercise, which led to the revocation of licenses of several commercial banks, savings and loans companies, and microfinance institutions.

SP/AE

Understanding Ghana's stock market and how to invest | BizTech