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Business News Thu, 16 Aug 2018

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GN Bank will exceed the minimum capital requirement - Dr Nduom

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President and Chairman of Groupe Nduom, Dr Papa Kwesi Nduom, has said his financial institution, GN Bank will exceed the minimum capital requirement of the Bank of Ghana.

According to the Politician cum Businessman, “GN Bank submitted a roadmap to meeting this requirement to the Bank of Ghana for its review. If approved, the bank would meet or exceed the minimum capital requirement.”

He added that the shareholders of GN Bank are still raising funds with the hope of arriving at the minimum of GHC600 million by December 31, 2018.

“GN Bank is also participating in talks that if successful can lead to merging with other banks,” he hinted.

The Bank of Ghana (BoG) on September 11, 2017, directed that all banks licensed in Ghana must increase their minimum capital to GHC 400 Million.

This development has since seen the revocations of licences of some local banks such as Capital Bank, UT Bank, Beige Bank, Construction Bank, Royal Bank, Sovereign Banka and uniBank.

The BoG declared these banks insolvent arising mainly out of bad corporate governance.

Three Banks were, however, said to have used fraudulent means through the use of suspicious and non-existent capital to procure their licences, an act many have called for further investigations and prosecutions.

At a media briefing on Thursday afternoon, Dr Nduom said the right to approve paid up capital contributions and mergers belong exclusively to the Bank of Ghana.

Therefore, “BoG has pointed out challenges we need to overcome and we are working around the clock to resolve them all. So we have initiated discussions with BOG officials with the hope that they will grant approval to our capital and merger plans very soon.”

He, however, appealed to Ghanaians that GN Bank and the other Ghanaian owned banks need deposits and emotional support to remain open, to be safe and sound, and liquid.

Source: www.ghanaweb.com

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