The license of twenty three (23) savings and loans companies and finance house companies has been revoked by the Bank of Ghana (BoG).
The affected institutions include Ideal Finance, GN Savings and Loans, First Allied Savings and Loans, ASN Financial Services, Midland Savings and Loans, IFS Financial Services, Unicredit Savings and Loans and Women’s World Banking Savings and Loans.
A statement from the central explained that, “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.”
The statement added, “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.”
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 Eric Nipah as a Receiver for the specified institutions in line with section 123 (2) of Act 930.
The companies are:
- 1. Accent Financial Services Ltd
2. Adom Savings and Loans Ltd
3. AllTime Finance Ltd
4. Alpha Capital Savings and Loans Ltd
5. ASN Financial Services Ltd
6. CDH Savings and Loans Ltd
7. Commerz Savings and Loans Ltd
8. Crest Finance House Ltd
9. Dream Finance Company Ltd
10. Express Savings and Loans Company Ltd
11. First African Savings & Loans Company Ltd
12. First Allied Savings and Loans Co. Ltd
13. First Ghana Savings and Loans Co. Ltd
14. FirstTrust Savings and Loans Ltd
15. Global Access Savings and Loans Company Ltd
16. GN Savings and Loans Ltd
17. Ideal Finance Ltd. Finance House
18. IFS Financial Services Ltd
19. Legacy Capital Savings and Loans Ltd
20. Midland Savings and Loans Company Ltd
21. Sterling Financial Services Ltd
22. Unicredit Savings and Loans Ltd
23. Women’s World Banking Savings and Loans Co. Ltd
The Bank of Ghana on Friday, May 31, 2019 revoked the licenses of some 347 microfinance institutions in the country.
It also took similar action against some 39 microcredit institutions operating in Ghana.
The central bank in a statement said the institutions whose licenses were revoked were either insolvent or had ceased operations.