GN Bank (GN) was unable to comply with the minimum capital directive by 31st December 2018, the Bank of Ghana (BoG) has disclosed.

Consequently, GN Bank applied for a savings and loans company licence, which was granted by the Bank of Ghana.

The Central Bank 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.

The Central Bank said it would closely monitor implementation of the approved transitional plan, which is expected to be completed by the end of June 2019.

In this regard, the Bank of Ghana 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 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 added.