The Bank of Ghana has effective the 16th of August 2019, revoked the licenses of of 23 insolvent savings & loans companies and finance house companies.
In a public release issued, the Central Bank stated that their decision to revoke the licenses of these companies is pursuant to section 123 (1) of the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930), which requires the Bank of Ghana to revoke the license of a Bank or Specialized Deposit-Taking Institution (SDI) where the Bank of Ghana determines that the institution is insolvent.
The Bank of Ghana has also announced that Mr. Eric Appiah has been appointed as a Receiver for the specialized institutions in line with section 123 (2) of Act 930.
According to the Bank of Ghana, 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 Bank of Ghana has also revoked the licenses of 2 non-bank financial institutions, namely Express Funds International Ltd (remittance company) and Ghana Leasing Company Ltd (leasing company). The Central Bank has further notified the Registrar of Companies of the revocation of these two licences and has requested the Registrar commences winding-up proceedings against these companies under the Bodies Corporate (Official Liquidations) Act, 1963 (Act 180).
In line with the government’s commitment to protect depositors’ funds, the government has made funds available to enable the Receiver pay depositors after the claims are validated. The Receiver will in due course make an announcement with regards to when and where payments will be made.
Below is the list of the 23 insolvent savings & loans companies and finance houses whose licenses have been revoked by the Bank of Ghana: