Led by Dr. Paa Kwesi Nduom, the streets of Elmina in the Central Region were charged with emotion on Monday, 2nd December 2024. Hundreds of demonstrators took to the streets in a massive protest as part of the ongoing “Bring Back GN Bank” campaign.
The participants, from all walks of life, expressed their frustration over the collapse of GN Bank, calling for its reinstatement to support local businesses and restore jobs. The demonstration saw protesters marching through some principal streets of Elmina.
Some of the demonstrators raised concerns about what they described as a “betrayal of trust” by traditional authorities and the government. They expressed their disappointment in the leadership of the Elmina traditional council.
Paa Kwesi Nduom Speaks
In his address to the crowd, Dr Paa Kwesi Nduom, founder of Groupe Nduom and GN Bank, expressed his frustration over the circumstances that led to the bank’s closure in 2019.
He criticized the decision to close the bank, stating, “The collapse of GN Bank was not just about regulations. It was a targeted attack on Ghanaian entrepreneurship and innovation. But I remain hopeful that a new administration will see the value in bringing back the People’s Bank.”
Dr Nduom emphasized the impact of GN Bank’s closure on small businesses and rural communities, where the bank played a crucial role in providing accessible financial services. He added, “The restoration of GN Bank is not just about me. It’s about restoring hope and confidence in our local businesses and people.”
The protest in Elmina is part of a broader nationwide campaign. It has seen similar events across the country aimed at galvanizing public support and drawing attention to the bank’s significant contributions before its license revocation.
Dr Nduom expressed optimism about the bank’s potential reinstatement, saying, “The journey is far from over. With the support of the people, we will succeed.”
Background
In 2019, the Bank of Ghana revoked the licenses of 23 savings and loan companies and finance house companies, including the GN bank.
The Bank of Ghana (BOG) justified its decision to revoke the license of GN Bank in 2019 by insisting that the action was warranted due to significant regulatory breaches.
The Central Bank maintained that GN Bank failed to comply with critical financial regulations and banking standards, threatening its operational stability.
Referring to a statement issued in August 2019 detailing reasons for the revocation, the Central Bank said GN Bank fell short of capital adequacy, liquidity governance, and risk management requirements.
GN Bank consistently failed to meet the minimum capital requirements, raising concerns about its ability to absorb losses and protect depositors. It also struggled with liquidity management, which affected its capacity to meet withdrawal demands from customers.
There were also deficiencies in GN Bank’s governance structure and risk management practices, which contributed to operational inefficiencies and heightened risk exposure.
For instance, “GN Bank suspended operations in seventy (70) of its branches, including the Head office branch at Asylum Down and Castle Road branch, and temporarily suspended its entire management team without the approval of the Bank of Ghana contrary to section 25 (2) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), mainly as a result of its insolvency and liquidity challenges.”
The bank subsequently sought legal action challenging the revocation of GN Savings and Loans’ license by the Bank of Ghana (BoG).
But in January 2024, an Accra High Court presided over by Justice Gifty Addo Adjei upheld the legality of the Central Bank’s decision, emphasizing the institution’s right to revoke the license due to governance deficiencies that rendered GN Savings and Loans unable to meet its debt obligations. However, in a series of Facebook posts in the last months, the bank’s founder, Dr. Papa Kwesi Nduom, gave a hint about what to expect in the coming days regarding the defunct financial institution.
