Help restore GN Bank if you return to power — Nduom petitions Mahama

Dr. Papa Kwesi Nduom, Chairman of Groupe Ndoum and owner of GN Bank, has petitioned former President John Dramani Mahama to assist in the restoration of the struggling financial institution.

This move comes amidst ongoing discussions about the challenges facing Ghana’s banking sector and the need for strategic interventions to revive struggling institutions.

In his petition, Dr. Nduom highlighted the critical role GN Bank played in providing financial services to underserved communities, particularly in rural areas.

He emphasized the bank’s unique positioning and commitment to financial inclusion, making it an essential asset in Ghana’s economic landscape.

The bank’s chairman expressed concern over the deteriorating state of its 300 centers across the country and urged Mahama to use his influence and experience to advocate for policies and measures that would facilitate the bank’s return to full banking operations.

He stressed the need for a collaborative approach involving key stakeholders, including the Bank of Ghana, government agencies, and the private sector, to develop a comprehensive plan for GN Bank’s revival.

“We believe that if this administration doesn’t give us our license before they leave and start paying the money before they leave, we believe that the next one, will understand the situation and give the license back.

So we are continuing with the hope and preparing and working our plans with the hope that, at some point, we will get the license back and we’ll bring the jobs back.

Because it is the jobs, that we are also looking for,” Dr. Nduom said.

“So we feel that collapsing a 300-branch financial entity is inimical to the economic interest of the country.

So whether it even belongs to us or belongs to someone else, it is something that needs to be there,” he noted.

In a related development, Mahama criticized the decision of the New Patriotic Party (NPP) government to revoke the licenses of some indigenous financial institutions as part of the 2019 banking sector cleanup.

He labeled the action as hasty and unjustifiable, stating that it was a one-size-fits-all approach that did not consider individual circumstances.

“I do think that government was hasty in what it did. If you look at the criteria that was used, I mean, it didn’t fit.

Also read; Groupe Nduom Demands Restoration of GN Banks License From BoG

It was, it was not a one-size-fits-all-all. I mean, it was just like different rules for different folks and so, yes, as you said, a lot of these banks had also financed government suppliers and contractors and the government owed them and they owed the banks.

“But how would they recover that money if you don’t pay the contractors to pay them? And so I do think that it was hasty, and it’s affected indigenous capital in the financial and banking sector.

And we have pledged that we would work to restore, you know, the capital of indigenous businesses in the financial sector.

“So we are advocating an independent review of the processes that went into the banking sector clean up and where we believe these were unjustifiable, look at the restoration of the licenses of this bank,” he stressed.

GN Bank, once a prominent player in Ghana’s banking industry, faced severe financial difficulties leading to its reclassification as a savings and loans company by the Bank of Ghana in January 2019.

The decision was part of a broader cleanup exercise aimed at strengthening the financial sector and protecting the interests of depositors.

However, the reclassification significantly impacted the bank’s operations, leading to a loss of confidence among customers and stakeholders.

The fate of GN Bank remains uncertain as it continues to struggle under its current status as a savings and loans company.

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