BOG insists GN Bank licence remains revoked

The Bank of Ghana (BoG) has categorically stated that it has not restored the banking licence of GN Bank, quashing persistent rumours to the contrary.

The Governor of the central bank, Dr. Johnson Asiama, in an exclusive clarification to the Daily Graphic, confirmed that the revocation of the licence in 2019 remains final and in full effect. The institution had previously been downgraded from a universal bank to a savings and loans company before its ultimate licence withdrawal.

The clarification comes amidst ongoing legal proceedings, as GN Savings and Loans continues to challenge the revocation in court, with a judgement expected soon.

The BoG has consistently maintained that its 2019 decision was a necessary action to protect depositors and ensure the stability of Ghana’s financial sector. The regulator has previously cited severe breaches of capital adequacy, liquidity, governance, and risk management requirements as the core justifications for the move.

GN Bank, originally established in 1997, expanded rapidly after its upgrade to a universal bank in 2014. However, the BoG concluded that this growth was not supported by commensurate capital and sound risk practices, leading to severe undercapitalisation and insolvency.

The collapse of GN Bank formed a significant part of the financial sector clean-up exercise, which saw several other institutions shuttered to address systemic weaknesses. The central bank insists its position on the matter remains unchanged.