Over 1,400 workers of GN Savings and Loans to lose their jobs

It is estimated that over 1,400 workers of GN Savings and Loans would lose their jobs in the coming weeks.

The expected dismissal comes at the back of the revocation of the license of the company which was downgraded from a Bank to a Savings and Loans earlier this year for failing to meet the new minimum capital requirement for banks.

Government has appointed a receiver to lead the process of payment of depositors and debt recovery.

On Friday, August 16, 2019, the Bank of Ghana (BoG) announced that “the Bank of Ghana has reached the conclusion that GN is currently insolvent under section 123 (4) of the Banks and SDIs Act, 2016 (Act 930), being in breach of its key prudential regulatory requirements. Its Capital Adequacy Ratio (CAR) is currently -61%, in breach of the minimum required of 13%. It is also facing a severe liquidity crisis with numerous complaints received by the Financial Stability Department of the Bank of Ghana from aggrieved customers who have been unable to access their deposits with the institution for the last several months. What is more, it has consistently failed to meet the minimum cash reserve requirement of 10% of its total deposits, since the end of the first quarter of 2019.

GN’s shareholders have failed to restore the bank to the required regulatory capital and liquidity levels in spite of long-standing promises that new capital was expected from foreign investors.”

While the company was operating over 240 branches across the country with presence in almost all districts in Ghana, sources at the company say over 1,400 workers may lose their jobs.

Most branches may be closed down, the source added.

Cashiers, mobile bankers, drivers, security and cleaners may be the casualties.