Local financial institution, GN Bank has been downgraded to savings and loans company, the Bank of Ghana (BoG) has announced.
According to the Central Bank, the move become necessary after they finished what it describes as the banking resolution requiring each commercial bank operating in the country to have a minimum capital of ¢400 million.
During a press conference in Accra on Friday, BoG Governor Dr. Ernest Addison said Vish Ashiagbor of the international audit firm Pricewaterhouse Coopers has been appointed an advisor for GN Bank to ensure a smooth transition to a micro-finance company.
He also confirmed reports that Stanbic Bank will now take over deposits of customers of the Bank of Baroda.
Dr Addison also disclosed that the operating licenses of Premium Bank and Heritage Bank have now been revoked over various issues including low capital.
The capital adequacy ratio of Premium Bank, for example, was found to be negative 125%.
Consequently, selected assets and liabilities of the Premium Bank and Heritage Bank will now be transferred to the Consolidated Bank.