BoG withdraws license of Express Savings and Loans Company Limited (ESLL)


Express Savings and Loans Company Limited (ESLL) was licensed by the Bank of Ghana on 14th August 2007.

The institution has remained insolvent since 2016 due to the inability of the shareholders to inject additional capital into the company. The institution has failed to meet the capital plan submitted to the Bank of Ghana in February 2018 requiring the institution to inject additional capital by end-April 2018 and subsequently to the required minimum. The institution’s adjusted capital adequacy ratio and net worth are both severely negative. as at end-May 2019.

The specific issues that resulted in the revocation of the institution’s license include the following:

a. The institution is insolvent and has consistently failed to meet the minimum Capital Adequacy Ratio requirement since 2016 due to accumulated losses.

b. The institution’s Net worth of negative GH¢119.83 million as at end May 2019 indicates that its paid-up capital is impaired in violation of Section 28(1) Act 930.

c. The institution’s capital adequacy ratio of negative 610.52% as at end May 2019 is in violation of Section 29(2) of Act 930.

d. The institution has persistently failed to meet the minimum cash reserve ratio requirement and customer withdrawal requests since 2014. Cash reserve requirement as at end May 2019 was 0.23%

e. The institution is overexposed to its related parties with regards placements.

f. The institution has failed to submit as well as publish its audited financial statements since 2016 in breach of Act 930, which requires financial institutions to publish and furnish Bank of Ghana with a copy of their audited financial statements not later than four (4) months after the end of the financial year.

g. The institution has closed down fourteen (14) of its eighteen (18) branches as at May 2019 without prior approval from the Bank of Ghana in breach of Section 25(2) of Act 930.


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