GN Bank Ghana was thriving, taking everything into account, until their license was repudiated by the Bank of Ghana.
GN Bank was demoted to a loans and savings organization by the Bank of Ghana (BoG) in 2019, following the bank’s failure to meet the BoG’s base capital of GH¢400 million by December 31, 2018, prompting the disavowal.
The license renouncement was swiftly done by the BoG, after several grievances by GN Bank’s customers came to their notice. These customers had their investments locked up for quite some time without release. They couldn’t pull out their investments for reasons obscure to them.
Presently, some individuals are requesting the rebound of the Bank. As per Nana Ofori Owusu- Chairman of PPP, the political party of the founder of GN Bank, Dr Paa Kwesi Nduom, he is appealing to the President of the country to direct the Security and Exchange Commission (SEC) to ensure that all customers of fund managers including Gold Coast/BlackShield were paid their investments without conditions.
Mr Owusu is again appealing to the President of the Republic to use his position to cause the reclamation of the license of GN Bank. The Chairman said numerous valuable resources are basically decaying endlessly.
PPP is calling for the re-examination of the method being used in the financial sector to determine the minimum capital requirements of financial institutions in Ghana.
Officials of PPP, speaking on behalf of GN Bank, say the fixed minimum capital approach adopted by the Ministry of Finance was archaic and discriminated against smaller companies, adding that the modern world used a flexible risk-based capital method that allowed regulators to ensure that financial companies had the right capital to match the business they wrote and the deposits they collected.
As per the group, they suspect that the one-size-fits-all minimum capital approach adopted by the government is a deliberate tool employed to put the new capital beyond the reach of targeted indigenous business entities in order for elements in government.
The party has called on the President and his lieutenants to always put the interest of Ghanaians first in all their deliberations and their decision-making including the application of regulatory minimum capital requirement for regulated financial institutions.
Parliament in 2021 approved funds to be used to pay customers of all fund managers whose licenses were denied. Unfortunately, some customers of the bank have lost their lives because of their locked up reserves. Subsequently, due to the funds approval, they expect the Finance Ministry to make payments to these affected customers who are suffering.