GN Savings signs MOU with Ecobank

Ecobank Ghana and GN Savings have signed a Memorandum of Understanding (MOU) to establish a partnership between the two financial institutions.

GN Savings signs an agreement with Ecobank

The agreement will ensure that the financial institutions work together in areas that will be mutually beneficial to both entities.

This MOU became necessary after GN Bank was reclassified as a Savings and Loans company, now called GN Savings.

After signing the MOU, the CEO of GN Savings Issah Adam said: “with this partnership signed, we urge our clients and the Ghanaian banking public to continue doing business with us.”

On his part, Dr. Edward Nartey Botchway, Executive Director of Finance Ecobank Ghana and CFO Anglophone West Africa said; “We at Ecobank are happy with the opportunity to provide banking services to GN Savings. The reclassification of GN Bank to GN Savings has resulted in the need for a Banking partner for GN Savings & Loans. We believe our superior technology platform and dedicated staff makes us the ideal partner to support GN Savings and Loans in this regard. For us, this is not just a transaction but a partnership that will serve both institutions well”. 

“We believe that this partnership will grow and possibly lead to other forms of strategic alliances in the coming years,” he added.

Present at the ceremony were; the Chairman of GN Savings Dr. Papa Kwesi Nduom, Dr Nana Kweku Nduom, Vice President, Groupe Nduom, Robert Danso Boakye, COO for GN Savings, Alfred Sakyi, Ecobank Head of Commercial Banking, Ghana and Anglophone West Africa, Adobea Addo, Ecobank Head of Branch Network, Kingsley Adofo-Addo, Ecobank Head of SME, Kelda Ofedie Ocansey, Ecobank Relationship Manager for Non-Bank Financial Institutions.

Background

In 2017, the Bank of Ghana gave a deadline for all banks to meet a new Minimum Capital Requirement.

Some banks merged, other liquidated while others opted to be reclassified.

In January 2019, the then GN Bank decided to be downgraded to a savings and loans company status rather than being forced to close down or be part of any arrangement to shore up its capital.

This was after GN Bank failed to meet the new Minimum Capital Requirement of GH¢400 million.

A statement issued in January by the Corporate Affairs Directorate of GN Bank, said: “The decision allows us to concentrate on ensuring maximum liquidity to sustain the business, instead of raising funds for additional capital as a universal bank.”

“These investors wanted the retail network we have built, but with the intention to abandon our vision of promoting financial inclusion and serving the needs of ordinary Ghanaians.

GN Bank attributed its inability to meet the minimum capital mainly to debts it said it was owed by contractors who worked on contracts awarded by state agencies and the government.

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