Home NEWS ARTICLES Government to restructure NIB, adb

Government to restructure NIB, adb

The Governor of the Bank of Ghana, Dr Ernest Addison, has announced that the government of Ghana intends restructuring the National Investment Bank (NIB) and Agricultural Development Bank (adb) to ensure they focus on industrialisation and agriculture, respectively.

Speaking at a press conference on Friday, 4 January 2018 regarding the recapitalisation of banks in Ghana, Dr Addisson said: “… The bank has verified resources for the recapitalisation. Some of these verification processes are still ongoing and will be validated by external auditors. Resources from that will be used to recapitalise the two state-owned banks – adb and NIB – to help drive and promote long-term sustainable financing of agricultural and industrial functions.”

“The government has notified the Bank of Ghana that it intends to restructure the NIB through governance and management reforms as well as streamline the bank to focus on industrialisation.

“To ensure that these reforms go through, the Bank of Ghana has appointed an Advisor for NIB, pursuant to Section 101 of the Banks and Specialised Deposit-Taking Institution Act, 2006.”

Meanwhile, GN Bank has been downgraded by the central bank to a Savings and Loans company after failing to meet the GHS400 million minimum capital requirement directive of the central bank by the 31 December 2018 deadline.

Announcing the decision, Dr Ernest Addison, said: “Ladies and gentlemen, GN Bank was unable to comply with the minimum capital directive by 31 December 2018”.

“Consequently, the bank has applied for, and the Bank of Ghana has approved the grant of a Savings and Loans company licence.

“The bank has also approved the transition plan submitted by GN Bank for winding down aspects of its business which are not compatible with the Savings and Loans [licence].

“The Bank of Ghana will, hopefully, monitor the implementation of the approved transitional plan, which is expected to be completed by June 2019.

“In this regard, the bank has also appointed an Advisor for GN Bank pursuant to section 101 of the Banks and Specialised Deposit-Taking Act to advise the management of GN Bank to ensure a smooth transition to a viable Savings and Loans company. The Advisor will hold office until otherwise advised by the Bank of Ghana”, Dr Addison said.

Twenty-three universal banks were able to meet the GHS400 million requirement.


Source: classfmonline.com

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