Breaking News: Bank of Ghana shuts down Ideal Finance, GN Savings, 21 other Savings and Loans firms

Ghana’s Central Bank has revoked the licenses of 23 Savings and Loans companies for being bankrupt.

They are Midland, Ideal, uniCredit and Global Access.

Accent, Adom, Alpha, All Time, ASN, CDH, Commerz, Crest, Dream Finance, Express Savings and Loans, First African Savings, First Allied, First Ghana, First Trust Savings and Loans.

The rest are: GN Savings and Loans, Legacy, IFS, Sterling, and Women’s World Bank.

“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,” the Bank of Ghana said in a statement.

It added: “The Bank of Ghana has also appointed Mr. Eric Nipah as a Receiver for the specified institutions.”

“The Bank of Ghana has also with effect from today, revoked the licences of two nonbank financial institutions, namely Express Funds International Ltd (remittance company) and Ghana Leasing Company Ltd (leasing company) which are insolvent and have been inactive for a number of years. This action is pursuant to Section 7 of the Non-Bank Financial Institutions Act, 2008 (Act 774), which mandates the Bank of Ghana to revoke the licence of a non-bank financial institution licensed under that Act if that institution among other things ceases to carry on business. The Bank of Ghana has notified the Registrar of Companies of the revocation of these two licences and has BANK OF GHANA E S T. 19 5 7 2 requested that the Registrar commences winding-up proceedings against these companies under the Bodies Corporate (Official Liquidations) Act, 1963 (Act 180),” the Central Bank noted.

Source: Daily Mail GH

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