Collapse of GN Bank, others was a failed government policy intervention - Alan Kyerematen

Alan Kyerematen, the leader of the Movement for Change, has said the decision to collapse Groupe Nduom Bank and other financial institutions was a failed government policy intervention.

He said since the Bank of Ghana (BoG), the regulator, had advised the defunct bank to reclassify to become a savings and loan company, it was not necessary to have halted their operations.

The presidential candidate made the statement when the management of Groupe Nduom presented a petition to the political party.

He said that if elected president, he would investigate the circumstances leading to the collapse of the bank.

“In my own personal view, I think that the decision by the government to withdraw the licenses not only of GN Bank but of other Ghanaian-owned banks amounted to policy failure. It was a failed policy intervention for strategic reasons.

“Particularly in your case, if it were the view of the government at that time that there were infractions and ethical misconduct on the part of GN Bank, it would not have made sense for them to give you advice to request reclassification since you were still working within the context of certain rules and regulations in the financial sector. If the government asks the bank to reclassify, then it is difficult to withdraw their license after such consideration,” he said.

The presidential candidate also noted that the collapse of GN Bank and other financial institutions was a failed policy and questioned why the government borrowed money to restore stability in the financial sector.

Mr. Kyerematen said the collapse of GN Bank was a big loss to the country, owing to the financial institution's resolve to increase financial inclusion and create jobs for Ghanaians.

He further assured the management of his ambition to make Ghana the financial hub for West Africa.

The presidential candidate was joined by senior officials of his party, notably Mr. Nana Ohene Ntow, Mr. Abubakar Siddique Boniface, and Mr. Buabeng Asamoah, to engage the management of Groupe Nduom.

Dr. Paa Kwesi Nduom, the Chairman of Groupe Nduom, said "closed-door" meetings with the government to pay its debts in order to address the liquidity challenges that occasioned the collapse of the bank had proved futile.

He added that the management of the defunct bank had continuously presented petitions to the relevant authorities, yet its request had not been heeded.

However, he was confident that the presidential candidate for the Movement would restore the license of the bank when he was elected, owing to his determination to see the successes of indigenous businesses.

He said the restoration of GN Bank’s license was critical due to the impact its absence had caused in the financial sector, especially in rural Ghana.