“GN Bank Comeback Faces Major Hurdles Despite Court Ruling” – Banking Consultant
By Maurice Otoo
Banking consultant Nana Otuo Acheampong says the possible revival of GN Bank faces significant obstacles despite recent legal developments surrounding the restoration of its license.
Speaking via a Zoom meeting on Kessben Maakye’s show in Accra, he insisted the Bank of Ghana (BoG) is currently seeking legal advice on the implications of the Court of Appeal’s ruling concerning the release of GN Bank’s license.
Acheampong explained that while the court has ruled on the matter, bringing GN Bank back into full operation would not be straightforward.
“It would be difficult for GN Bank to come back alive,” he stated, citing the demanding capital requirements governing Ghana’s banking industry.
He noted that the minimum capital requirement for universal banks stands at GH¢400 million, a benchmark several institutions struggled to meet during Ghana’s banking sector reforms, resulting in some being downgraded to savings and loans status.
He added that even savings and loans institutions are required to maintain significant capital levels, estimated at GH¢45 million.
“I don’t know if they have done their homework already on the minimum balance, otherwise it would be nothing to write home about,” he said.
The banking consultant stressed that much of the public conversation around collapsed financial institutions has been shaped by the reasons advanced by the Bank of Ghana during the banking sector cleanup exercise.
He also questioned assertions that GH Bank and Uni Bank had strong financial standing before their collapse.
“I don’t understand why GN Bank claims to have had a minimum balance of about GH¢200 million and yet BoG would collapse the institution,” he remarked.
Acheampong concluded that the outcome will depend largely on the Bank of Ghana’s assessment of the legal ruling and whether any institution seeking a return can satisfy the regulatory and capital demands of the financial sector.
