IN THE MATTER OF THE BANKS AND SPECIALISED DEPOSIT-TAKING INSTITUTIONS ACT, 2016 (ACT 930) AND IN THE MATTER OF THE 23 SAVINGS AND LOANS COMPANIES (S&L) AND FINANCE HOUSE COMPANIES (FINANCE HOUSES) (IN RECEIVERSHIP)
Pursuant to section 123 (1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), the Bank of Ghana (“BoG”) on 16 August 2019 revoked the operating license of 23 Savings and Loans Companies (S&L). The revocation of the licenses was necessary because the S&Ls were insolvent even after a reasonable period within which the Bank of Ghana had engaged them in the hope that they would be recapitalized by their shareholders to return them to solvency. BoG assessed that these institutions had no reasonable prospects of recovery, and their continued existence poses severe risks to the stability of the financial system and to the interests of their depositors.
BoG in accordance with section 123(2) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930) appointed Eric Nana Nipah, a Director of PricewaterhouseCoopers Ghana Limited (“PwC”) as the Receiver for the purposes of winding up the affairs of these institutions.
The Receiver in accordance with Section 123 (3) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930) has taken control of the 23 S&Ls and is prosecuting the receivership in accordance with the provisions of Act 930.
Notice is hereby served on all Debtors of the affected S&Ls to make arrangements to settle the full amounts of their overdue indebtedness to the respective S&Ls as soon as possible, failing which the Receiver shall consider all his options including legal action against Debtors to recover the outstanding loan facilities granted them without recourse to them.
All debtors should contact the Receivers representatives at their respective S&L branches to make immediate payment.
ERIC NANA NIPAH
The Receiver
23 SAVINGS AND LOANS COMPANIES