The Bank of Ghana (BoG) has approved the grant of a savings and loans company licence to Group Nduom (GN) bank.
This follows the bank’s inability to meet the Minimum Capital Directive of GH400 million cedis set by the Central bank.
At a news conference in Accra on Friday, BoG Governor Dr Ernest Addison said an advisor has been appointed for GN Bank to ensure its smooth transition to a micro-finance company.
“GN Bank (GN) was unable to comply with the Minimum Capital Directive by 31st December 2018. Consequently, GN Bank has applied for, and the Bank of Ghana has approved the grant of a savings and loans company licence. The Bank of Ghana has also approved a transition plan submitted by GN for winding down aspects of its business which are not compatible with a savings and loans company licence,” he said.
He continued that the Central bank will closely monitor implementation of the approved transitional plan which is expected to be completed by the end of June 2019.
Meanwhile, BoG has appointed an advisor for GN pursuant to section 101 (1) of the Banks and Specialized Deposit-Taking Institutions Act of 2016 (Act 930), to advise management of GN with a view to ensuring a smooth transition to a viable savings and loans company.
The Advisor, according Ernest Addison, “will hold office until otherwise advised by the Bank of Ghana and will furnish the Bank of Ghana with a status report on the GN in three months and as frequently as the Bank of Ghana may require.”
BoG on September 11, 2017 issued the Minimum Capital Directive by which all universal banks were required to increase their minimum paid-up capital to GHC400 million by December 31 last year.
According to the Governor, 16 banks which includes Ecobank, Zenith, GCB, Standard Chartered, Stanbic, Fidelity, UBA, Barclays, Access, Consolidated, CAL, FNB, Republic, Societe General, GT Bank and the Bank of Africa – have so far met the minimum capital requirement as at December 31.