The Bank of Ghana has, with effect from today, revoked the licences of twenty-three (23) insolvent savings and loans companies and finance house companies.
These actions were taken pursuant to Section 123 (1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), which requires the Bank of Ghana to revoke the licence of a Bank or Specialised Deposit-Taking Institution (SDI) where the Bank of Ghana determines that the institution is insolvent. The Bank of Ghana has also appointed Mr. Eric Nipah as a Receiver for the specified institutions in line with section 123 (2) of Act 930.
The revocation of the licences of these institutions has become necessary because they are insolvent even after a reasonable period within which the Bank of Ghana has engaged with them in the hope that they would be recapitalized by their shareholders to return them to solvency.
It is the Bank of Ghana’s assessment that these institutions have no reasonable prospects of recovery, and that their continued existence poses severe risks to the stability of the financial system and to the interests of their depositors.
In line with the Government’s commitment to protect depositors’ funds, the Government has made funds available to enable the Receiver pay depositors after their claims are validated.
The Receiver will in due course make an announcement with regards to when and where payments will be made.
The Receiver will also indicate documents required from depositors to facilitate the validation of claims and orderly payment of validated deposits. Other creditors of the failed institutions will be settled by the Receiver upon validation of their claims and to the extent that the Receiver is able to realise value from the remaining assets of these institutions.
Source: Peacefmonline.com
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WHY THIS SOO CALLED CLEAN UP NOT DONE IN THE PREVIOUS GOVERNMENT?? I HOPE MOST OF THIS BANKS AND MICROFINANCE COMPANIES EXISTED SINCE 1992? WHY ONLY COLLAPSING THEM UNDER AKUFO ADO??PLS GUYS IN NPP NOTE THAT IN 2020 MOST GHANAIAN WILL VOTE BASE ON WHAT THEY THOUGHT WAS RIGHT AND REASONABLE.NPP WILL SURELY SURFER VOTE ON ALL THIS WORKERS ESPECIALLY ON MENZGOLD 46000 CUSTOMERS STTAFS AND THIS BANKS/MICRO COMPANIES. SAD NEWS ONLY PROPAGANDERS IN POLITICS WILL SUPPORT THIS ***barred word*** CLEAN UP.
The bank of Ghana is doing a great job of eliminating bad insolvent banks in Ghana to protect the Ghanaian public from loosing their money to insufficient money on hand in some banks to pay depositors when they needs their funds.
BUT WHY THESE SO MANY LOANS FINANCIAL INSTITUTIONS IN SUCH A SMALL COUNTRY LIKE GHANA? AND WHY ARE YOU GUYS BLAMING THE GOVERNMENT FOR DOING THE RIGHT THING? IS MENZGOLD SAGA LOST ON YOUR MINDS IN A HURRY? COME ON GUYS!!!
Elections have consequences. Ndoum, you got what you wished for so deal with it.
First of all who gave all these licenses without doing due diligence, the upspring of all the unsustainable financial institutions in our country was collapsing the financial sector hence the state of our economy, let's be patriotic and drop our personal interest, the financial sector really needs cleaning. God help our beloved country.
Why is the government refusing to pay for all the contractors who are also owing these instructions? This is too wickedd! They wish they were the only important people in this country, they don't understand why ndoum should own so much businesses. No wonder they didn't want kwame Nkrumah to build any university in Ghana
Nana oguodwuma the 1st! Ayekooo!! May you and your family live forever! This action by Nana and his finance minister is a clear case of envinness, wickedness and madnesssss.
Nana oguodwuma the 1st!
This is when you sit and analyse things in Ghana and tell yourself . Living in Europe or abroad , should I even come and open a company in Ghana or do buy and sell or also seek for contracts in both government and private sector.
The right must be done to weed off what will later turn out to be a disaster. The financial system must be clean.