BoG justifies revocation of GN Banks license [Video]

The Bank of Ghana (BOG) has justified its decision to revoke the license of GN Bank in 2019, citing significant regulatory breaches.

In a lengthy statement, the Central Bank explained the defunct bank failed to comply with critical financial regulations and banking standards which threatened its operational stability.

Referring to a statement issued in August 2019, BoG said, GN Bank fell short of capital adequacy, liquidity and governance and risk management requirements.

“GN Bank consistently failed to meet the minimum capital requirements, raising concerns about its ability to absorb losses and protect depositors. It also struggled with liquidity management, which affected its capacity to meet withdrawal demands from customers.

“There were also deficiencies in GN Bank’s governance structure and risk management practices, which contributed to operational inefficiencies and heightened risk exposure,” the statement read in parts.

As a result, BOG’s revocation of license was a necessary step to safeguard the …