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Chairman of Groupe Ndoum and owner of GN Bank, Dr. Papa Kwesi Ndoum, has petitioned former President John Dramani Mahama to aid in the restoration of GN Bank. This request 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. Ndoum emphasized the critical role GN Bank played in providing financial services to underserved communities, particularly in rural areas. He argued that the bank’s unique positioning and commitment to financial inclusion make it an essential asset in Ghana’s economic landscape.
Dr. Ndoum 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 highlighted 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.
Expressing concern over the deteriorating state of 300 of the bank’s centers across the country, Dr. Ndoum stated, “We believe that if this administration doesn’t give us our license before they leave and start paying the money before they leave, the next one will understand the situation and give the license back. We are continuing with hope, preparing and working our plans with the expectation that we will get the license back and bring the jobs back. Because it is the jobs we are also looking for.”
He added, “Collapsing a 300-branch financial entity is inimical to the economic interest of the country. Whether it belongs to us or someone else, it is something that needs to be there.”
Former President Mahama criticized the New Patriotic Party (NPP) government’s decision to revoke the licenses of some indigenous financial institutions as part of the 2019 banking sector cleanup, labeling it as a hasty action. He argued, “I do think that government was hasty in what it did. If you look at the criteria that was used, it didn’t fit. It was not a one-size-fits-all approach. A lot of these banks had financed government suppliers and contractors, and the government owed them. How would they recover that money if you don’t pay the contractors to pay them?”
Mahama continued, “It was hasty and has affected indigenous capital in the financial and banking sector. We have pledged to work to restore the capital of indigenous businesses in the financial sector. We are advocating for an independent review of the processes that went into the banking sector cleanup and where we believe these were unjustifiable, look at the restoration of the licenses of this bank.”
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. This 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.