The Bank of Ghana (BoG) has firmly dismissed claims that the banking licence of GN Bank will be restored, following its downgrade to GN Savings and Loans Company Limited and the subsequent revocation of its licence.
According to the central bank, the decision taken in 2019 was final and aimed at protecting depositors while preserving stability within the financial sector. In an earlier interview in 2024, the BoG reiterated that the revocation was justified, citing serious regulatory infractions by the bank.
The regulator maintained that GN Bank failed to meet critical financial and prudential standards, undermining its operational and financial stability. In a statement issued in August 2019, the BoG explained that the bank did not satisfy capital adequacy, liquidity, governance, and risk management requirements.
GN Bank began operations in 1997 as First National Savings and Loans (FNSL) Company Limited and was upgraded to a universal bank on September 4, 2014. It subsequently expanded rapidly nationwide, building one of the largest branch networks in the banking sector. However, the BoG said this growth was not supported by sufficient capital buffers or robust risk management systems.
Regulatory assessments revealed repeated breaches of prudential requirements, including capital adequacy and liquidity ratios. Further investigations uncovered high non-performing loans, extensive related-party exposures, and weak corporate governance, all of which progressively eroded the bank’s financial position.
Despite multiple directives and corrective measures issued by the BoG—including capital restoration plans and restrictions on certain operations—the bank failed to raise additional capital or restructure effectively to restore solvency. As a result, the institution was deemed severely undercapitalised and technically insolvent.
Before the licence revocation, the BoG directed the bank to downgrade its status to a savings and loans company, operating as GN Savings and Loans Company Limited. Shortly afterward, its licence was revoked as part of efforts to prevent wider risks to the financial system.
The collapse of GN Bank/GN Savings and Loans Company Limited formed part of the broader banking sector clean-up exercise, which led to the revocation of licences of several banks, savings and loans companies, and microfinance institutions to address systemic vulnerabilities in the sector.
Speaking in an interview with Graphic Online, the Governor of the Bank of Ghana, Dr Johnson Asiama, confirmed that the issue has been conclusively settled by the Supreme Court, leaving no scope for regulatory or legal reconsideration.
“There is a Supreme Court ruling on that matter. The review also failed. So nothing can be done. However, we are open to considering applications for a new licence from individuals or entities not connected to the directors of the defunct GN Savings and Loans Company Limited,” the Governor stated.
His comments follow renewed reports suggesting that the central bank had restored GN Bank’s licence—claims the BoG has unequivocally denied.
