Restore and upgrade GN Savings’ license – Nduom tells BoG

Groupe Nduom has challenged the Bank of Ghana’s (BoG) statements concerning GN Savings from August 16, 2019.

The BoG on June 14 justified its decision to revoke the license of GN Bank in 2019 insisting that the action was warranted due to significant regulatory breaches.

The Central Bank maintains that GN Bank failed to comply with critical financial regulations and banking standards, threatening its operational stability.

Simply, the BoG is implying, it cannot restore the license of GN Bank as demanded by its management.

Referring to a statement issued in August 2019 detailing reasons for the revocation, the Central Bank said that GN Bank fell short of capital adequacy, liquidity, governance, and risk management requirements.

But the Groupe in a release on Sunday, June 16 claimed that the BoG’s declaration of insolvency for GN Savings was based on “wildly inaccurate” information and demanded the restoration and upgrade of GN Savings’ license.

It stated that the contention began when the BoG cited a lack of sufficient funds as the reason for GN Savings’ insolvency.

Groupe Nduom refuted this, stating that GN Savings had more than the GHS30.33 million BOG relied upon to make its decision.

It asserted that GN Savings was compliant with all BOG regulations and had even submitted a detailed report in June 2019 demonstrating positive business progress.

Groupe Nduom also highlighted that the Government of Ghana and its agencies owed Groupe Nduom companies over GHS7.1 billion.

The Groupe argued that if these debts were paid, not only would customers be compensated, but GN Savings would also possess sufficient capital to become a universal bank once more.