Ghana’s financial sector has seen quite an unsteadying move in 2019. One bank failed. A second and third were bailed out.

Worried depositors of two more banks then rushed to pull out their savings for fear of losing them in a spectacular failure. This, among others, saw financial institutions lose their licenses.

According to a statement released by the central bank, it said the revocation was because the banks had become insolvent even after a reasonable period within which the Bank of Ghana had engaged with them in the hope that they would be recapitalized by their shareholders to return them to solvency.

Ghanaweb compiles a list of these institutions that folded up in 2019.

Legacy capital savings and loans limited

On 12th August 2016, Legacy Capital was licensed to operate as Savings and Loans Company in Ghana by the Bank of Ghana. It, however, began actual operation in November 2016.

BoG revoked the license of Legacy Capital on the grounds of insolvency and liquidity issues.

Alpha capital savings and loans limited

This company (Alpha Capital) begun operations in April 2015 after Bank of Ghana awarding it a savings and loans license in January same year. According to BoG, meeting depositors’ withdrawals was a significant challenge for the company. That resulted in numerous agitations and confrontations by aggrieved customers of Alpha Capital.

Midland Savings and Loans

Bank of Ghana (BoG) has revealed Midland Savings and Loans Company Limited registered persistent operational losses which made it difficult for it to operate.

This culminated in an adjusted negative Capital Adequacy Ratio (CAR) and negative net worth for the company as of August 31, 2018.

A Bank of Ghana (BoG) report on the company which revealed this said Midland Savings and Loans was overexposed to its related parties including Liberty Asset Management, Liberty DMI Microfinance and Griffin Financial Services which was rolled over in spite of the liquidity challenges it faced. “The institution was found to be facing liquidity challenges in January 2017.

Ideal Finance Ltd. Finance House

It consistently failed to meet the minimum cash reserve requirement of 10% of its total deposits.

Ideal Finance shareholders have failed to restore the bank to the required regulatory capital and liquidity levels in spite of long-standing promises that new capital was expected from foreign investors according to the BoG.

GN Savings and Loans Company

GN Savings and Loans Company Limited was originally incorporated as First National Savings and Loans (FNSL) Company Limited and licensed as a Savings and Loans Company. Subsequently, the financial house was issued with a universal banking license by the Bank of Ghana on September 4, 2014, and was renamed GN Bank Limited.

On January 4, 2019, the bank was reclassified from a universal bank to a Savings and Loans Company because it was not able to meet new required minimum paid-up capital of GH¢ 400 million by December 31, 2018.

The financial condition of the institution has also deteriorated since the reclassification with both negative capital adequacy ratio and negative net worth.

The in-liquid nature of the savings and loans outfit caused it to lose its operation licensing.

Below is the list of twenty-three (23) insolvent institutions whose licenses have been revoked

1 Accent Financial Services Ltd-Finance House 2 Adom Savings and Loans Ltd-Savings and Loans Company

3 AllTime Finance Ltd-Finance House

4 Alpha Capital Savings and Loans Ltd-Savings and Loans Company

5 ASN Financial Services Ltd-Savings and Loans Company

6 CDH Savings and Loans Ltd. Savings and Loans Company

7 Commerz Savings and Loans Ltd-Savings and Loans Company

8 Crest Finance House Ltd-Finance House 9 Dream Finance Company Ltd-Finance House

10 Express Savings and Loans Company Ltd-Savings and Loans Company

11 First African Savings & Loans Company Ltd-Savings and Loans Company

12 First Allied Savings and Loans Co. Ltd-Savings and Loans Company

13 First Ghana Savings and Loans Co. Ltd- Savings and Loans Company

14 FirstTrust Savings and Loans Ltd-Savings and Loans Company

15 Global Access Savings and Loans Company Ltd- Savings and Loans Company

16 GN Savings and Loans Ltd-Savings and Loans Company

17 Ideal Finance Ltd- Finance House

18 IFS Financial Services Ltd- Finance House

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19 Legacy Capital Savings and Loans Ltd -Savings and Loans Company

20 Midland Savings and Loans Company Ltd.- Savings and Loans Company

21 Sterling Financial Services Ltd. -Finance House

22 Unicredit Savings and Loans Ltd. -Savings and Loans Company

23 Women’s World Banking Savings and Loans Co. Ltd.-Savings and Loans Company