BOG annuls licenses of 23 savings and loans; Abii National excluded

The Bank of Ghana (BoG) has revoked the licences of twenty-three bankrupt savings and loans companies and finance house companies and appointment of a receiver.

The institutions include Accent financial, Adom savings and Loans, GN Savings and Loans, First Alied savings and Loands, Global Access Savings and Loans, Midland Savings and Loans Company.

The revocation of license, according to BoG had become necessary because the institutions are insolvent even after a reasonable period within which the BoG engaged them in the hope that they would be recapitalized by their shareholders to return them to solvency.

However, Abii National was excluded.

Meanwhile, Eric Nipah has been appointed as a Receiver for the specified institutions in line with section 123 (2) of Act 930.

In a statement by the BoG, it explained that, “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.”