Savings and Loans brouhaha: Depositors funds are not 100% safe - BoG
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Savings and Loans brouhaha: Depositors funds are not 100% safe - BoG

- The Bank of Ghana has explained why it revoked the licenses of 23 Savings and Loans

- The BoG has also noted that it cannot provide full assurance to depositors whose monies have been locked up in 23 Savings and Loans companies

- The Bank of Ghana has appointed Mr. Eric Nipah as a Receiver for the specified institutions

The Bank of Ghana (BoG) has disclosed that it cannot guarantee that depositors’ funds which are currently locked up in some embattled Savings and Loans companies are safe.

Explaining matters further on Joy FM, the Deputy Director of Banking Supervision at the BoG, Elliot Amoako, said a refund of depositors’ funds are not 100% guaranteed.

Answering questions about the guarantees that depositors’ funds are safe, he told Joy FM: “I cannot say that 100%.”

READ ALSO: BoG names 25 Savings and Loans companies that are in good standing

The Central Bank on Friday, August 16 revoked the licences of some 23 Savings and Loans companies in the country.

In a statement, the BoG said: “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.”

Among the affected financial institutions are GN Savings and Loans, First Allied Savings and Loans, Global Access Savings and Loans and Midland Savings and Loans.

READ ALSO: BoG gives reasons for revoking Ndoum’s GN Savings

The revocation of the licences of the 23 Savings and Loans companies adds to woes of the financial sector in recent years.

The last two and half years have seen several banks, investment companies and microfinance companies closed down. earlier reported that Vice President Dr. Mahamudu Bawumia has commissioned the country’s largest fertiliser-blending factory in the Eastern Region as part of government's 1D1F programme.

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Source: Yen

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