Panic withdrawals hit Women’s World Banking Savings and Loans

Hundreds of customers have thronged the premises of Women’s World Banking Savings and Loans, Madina branch to cash out their deposited monies following the revoking of license of the bank as announced by the Bank of Ghana Friday.

The Women’s World Bankings Ghana was part of 22 others who had their licenses revoked.

Whilst some customers look on as captured in the video, a number of others are seen sitting on the pavement waiting for the bank to begin operations.

On May 31, 2019, BoG revoked the licenses of 347 institutions and 39 microcredit institutions operating in the country. Some of these affected banks resorted to merging hence, the functioning of the Consolidated Bank Ghana limited.

So far, a total of 420 financial institutions have been insolvent and have had their licenses revoked.

BoG in the statement explained that the actions “were taken in pursuant to Section 123 (1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), which requires the Bank of Ghana to revoke the licence of a Bank or Specialised Deposit-Taking Institution (SDI) where the Bank of Ghana determines that the institution is insolvent. The Bank of Ghana has also appointed Mr Eric Nipah as a Receiver for the specified institutions in line with section 123 (2) of Act 930.”

The central bank in a statement Friday indicated that, revocation of the licences of these 23 institutions has become necessary because they were insolvent even after a reasonable period was granted them hoping they would be recapitalized by their shareholders to return them to solvency.

However, BoG has provided funds for the 23 finance houses, savings and loans companies whose license have been revoked to pay affected customers.