This video presents a critical analysis of Ghana's financial sector regulatory framework, examining how the Bank of Ghana's regulatory authority was challenged by the Court of Appeal's decision to restore GM Bank's license despite the bank's insolvency. The presenter argues that financial regulators should maintain autonomous authority over licensing decisions, as judicial intervention in regulatory matters undermines the regulatory framework's effectiveness. The case study highlights how GM Bank violated multiple regulatory requirements including capital adequacy ratios (61% vs. 13% minimum), cash reserve requirements (10%), and related party exposure limits (25%), ultimately leading to the revocation of licenses for 23 insolvent savings and loans companies. The presenter emphasizes that regulators, not courts, should determine institutional solvency and licensing status to maintain financial sector stability.
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LIVE: Gordon Asare-Bediako Presents The Ghana Nti Political Show | 1/6/26Added:
You won't be the First, secondary school.
15 per letterus number 3.4 It doesn't make economic sense.
Focus on prices to the rescue of gold. Gold dealersh.
Yes.
Yes.
in his absence.
LGBT And I will say animals gate electric.
WHAT'S my offense?
Well done.
First inside here.
My name 50 cm.
from 10 m away.
What is he preventing?
WHAT IS HE PREVENTING? NOTHING.
WHAT PREVENTING? NOTHING.
There will be Foreign speech. Foreign speech. Foreign speech.
Obama person who saychech.
What have you achieved? Nothing. Your father was that fear.
There was that fear.
That's president for you.
Bank of GH decision court of appeal take decision based on allegation allegation substances.
So pathetic of appeals court of appeals of taking steps from 10 10 offices branches without Bank of Ghana.
Are you going to start the business again?
Come on. 24hour 24 market all markets in Ghana It is said here soal 24hour market.
14 Ghana alliance alliance. Okay. Betros Alliance director.
Okay.
Communications officer.
one.
>> Okay.
All right.
I'll be starting with I think starting with of course during the campaign time. Yeah.
Okay.
Now before last week what is money? What is money? Of course.
So now or my a signal of what was to come and clearly we witness it. In fact, you watch the dinner.
>> Mhm. You watch the dinner. Look what Dr. Okay. For examp what came about it.
birthday.
Look at what we are witnessing. So it Springfield.
Wow.
Social media deal with it.
Mhm.
Set up.
Now maybe they expectations.
CDC More speech.
Ghana.
Okay.
Chief Justice Chief, height of indiscretion.
Justice even though it was a funeral almost like a political gathering chief justice Justice and I feel so comfortable with NDC class and this is the first time justice be almost like a socialite with exception of the fact job That's the only difference.
We need permanent job permanent job.
That's the only difference.
Because we very very selective judge in fact judges very careful very very careful very very careful justice for the first time when YOU SAY THAT'S TRUE. THE FIRST TIME in fact They come early for me.
Okay.
Okay. So with the LGBT you see access to both copies. Oh correct the both the 2021 2024 and then the 2025 >> but you see when you take these two documents aside the 30 amendments >> I don't even want to go into those amendment don't but I'm going to highlight two key things first of there's this kind of hypocrisy on the side of the majority now the government we are doing politics we are stating the fact and this is what we are saying now I'm going to give an example M.
Mhm.
Mhm.
For some obvious reasons, I will say that is the question from obvious is in Hey.
So in that case, suspect.
So this is what we are saying when it comes to anti-LGBT LGBTQ anti-LGBTQ bill or law or act. Now this is the point.
In fact, this particular billic acid against this LGBTQ and his reason was that there was a time That is why.
Okay.
against that that was fine. In fact, LGBTQ very well. Thank you. Now peace.
Mama was the hope because it did not reach the desk of the president. So it last with the parliament.
The bill has already been prepared. The man who championed the cause on the floor of parliament was the speaker of parliament. Yes.
In his life and as he leaves he make sure that is passed.
One of the reason why he was maintained was this bill.
What happened is 18 months down the line proper human sexual rights and Ghanaian family values theory. And I want you to understand two key objectives for me.
Proper human sexual rights under proper mommy Ghanaian family values proper when you take the new one human sexual rights and family values okay now hold on this is what they trying to tell you and that is what Ghanaians have not paid attention I don't want to even talk about the 30th amendment that one aside Mhm. Mhm.
>> Now this is it. When you say proper you have your human sexual right of course human sexual right human sexual if you allow us to say what we want to do in our bedroom differently to me once it is okay for me. It is within my confine. It is within my human right.
But there is one thing that qualifies it. Is it proper?
Is it proper?
The one thing is it proper it has to be proper to meet.
It has to be a standard confirm of the Ghanian Valley. Yeah. Today they have taken away the proper. What he means is that it is okay.
First it shouldn't just be right for you or to you. It has to meet or conform to the standard. Now the standard has been taken away. Second, the Ghanaian are families different.
This is what it means. by this bill you said it has to be Ghanaian family values immediately you say Ghanaian family values when you specify this bill said it has nothing to do with Nigerian family values you have nothing to do with UK you can be your Nigerian believer but when you get to Ghana whatever action whatever thing you do it has to conform with the Ghanaian family values when you automatically say Ghanaian family values then you open up our tradition, our customs, our norms, our taboos, what we like, what we dislike us as Ghanaians. Yes.
When we hold you accountable, we ask you does it conform with the Ghanian values.
That was what they wanted to sign. Today the Ghanian is not there again. Wow. So automatically what it means is that values.
Do you understand? Yes.
family. It is his or her family because now Ghanaian is on Ghanaian soil but it does not confify him. It is up to him.
That is why when you take such a person to court it is ambigu and my human right. So one it is my human right two IT IS WITHIN MY family we qualify to do this that is the problem you proper wow so once it is okay for me it is okay now there's no measurement or standard I have to meet it just have to be okay for me it just have to be okay from where I am coming from or the family I'm coming from and it is okay if you take me to court I contest. This is where and how dangerous.
Even before we talk about amendment, look at immediate anti-LGBTQ. I call it anti LGBTQ. And you see I am telling you look Listen, we are expecting you to do and I want to exc bring what you presented to. You see, all I'm waiting for the president to do is that let them present the old bill and then make recommendations.
That is the recommendation of the president.
We just want to know the recommendations of the president.
promise.
What happened? Is this one the government sponsored bill? No. So what happened? So you see there are lot of questions we want to ask. I say amendment.
I was expecting say it will be submitted to the president recommendation. me as a president maybe said he wants to sign then we know the st of the president on the bill then they come back to parliament and then parliament do those amendment and submit again the president will sign a this is an anti-LGBT bill and s president say oh speaker of parliament he wasn't aware Council religious bodies priority. Okay.
Draft 2024 election.
Okay.
You say LGBT president Abdul President Christian Council, any Muslims council Mhm.
Your mama sign LGBTQ class law.
provide service LGBT service LGBT LGBT.
Mhm.
Ghana MP government.
And they say satanic government.
PP other countries, LGBT for now. So speak and speak a little I need to be number end of the day.
MPs.
Oh, I was calling back.
I was under house of record.
Okay.
Yeah. Presentation. Are you ready?
>> Yeah. Yeah. If Are you ready? Okay.
Okay. All right.
You see this banking sector clean up Empire >> in our 2024 election probably from 2017 especially 2019 of course and it cost us a lot.
the lines of appeal. You see the problem is that court of appeal.
That is why Bank of Ghana is going to court because say they should take steps to restore it for them. I say first of all we overturning the rule of the high court and then two restore the license of GM bank in fact GM citizen that is the rule that is why bank of Ghana is going back. Bank of Ghana is going for interpretation say does the court or any court have the right have the right to restore or to give license without the authority of the regulator. Uhhuh. That is why bog is going to court. But we are going to discuss why I am saying GM bank does not even deserve We are going to discuss his issues here now.
Okay.
Thousands of depositors stranded at equity service and loans faces collapse.
with multiple branches sat what's the date okay thousands of depositors stranded as savings and loes collapse with multiple branches sat okay now I gave you this because as we are speaking today there is a possible shutdown of savings and loans and banks yes because they like they are literally insolvent yes now we are going to discuss pass here today.
Okay. Now document document.
Okay. Okay. Thank you. Now page 12 page 12 and I'm going to build my point from here to go on. Follow me. Okay.
Paragraph 29.
No, no, no, no, no. Down. Down. Down.
bra.
>> Yeah.
Next one.
Okay.
>> Yes. Financial sector issues, right?
>> Yes.
>> This is a report from IMF.
International Monetary Fund.
Thank you.
>> Now, paragraph 35. The BOG is adopting measures to ensure that the financial system remains strong and stable, including by strengthening the legal framework for supervising and regulating the financial uh system, the new banks and specialized deposit taking institutions bill and the Ghana deposit protection bill.
Okay. The new banks and specialized deposit taking institution.
Okay.
Mhm.
>> Now, okay. Have been submitted to parliament and once approved, >> the do will develop regulations needed to fully implement these laws by June 2016.
>> June 2016 >> with assistance from the long-term IMF advisor.
>> Okay. 36. A special diagnostic external audit of commercial banks to review asset classification and valuation >> provisioning and low and lowing practices according to both cor according to both the B credential requirements as well as international financial reporting standards was completed in September and September 2015. Yes. And the final report is due by the end of December that's 2016. In parallel, the B has evaluated non-performing government guaranteed struures and their effect on bank loans loan books. The prelim results indicate some differences in the interpretation of the guidelines related to impairment. After reviewing these discrepancies with the banks, the B will take action to remedy and provisioning and require banks to increase capital if necessary. Okay.
>> In line with a timeline which will be agreed with the banks.
>> The do also issue a guideline to consolidate earlier directives issued on the IFRS as well as give give a position clarifying gray areas of the standard.
areas of the credential laws which are not too clear are also being reviewed.
>> Mhm.
>> Okay. Now can can the building has been collaborating with Afric to build capacity of implementing base two and three and a long-term advisor commence duty in October to assist the bank or on banking supervision. The do has also requested fund staff to conduct a financial sector assessment program in in 2017.
>> Okay. Thank you. Now specialized deposit.
>> Okay.
Anyway, so this is the bank and specialized deposit.
Mhm. Yeah.
Yeah. Mhm.
You see deposit taking institution.
to wear the banks and specialized deposit taking institution act 2016.
>> Yes. An act to amend and consolidate the law relating to deposit deposit taking to regulate institutions which carry on deposit taking business and to provide for related matters.
Okay. Date of ascent 14th September 2016 as it is signed by the president. It is the same thing to the LGBT bill passed by parliament and by the president. Yes. Okay. So this document showc no IMF no bank of Ghana first one document show first document GN GNI Right.
>> Thank you. Thank you.
>> Now, this is a Bank of Ghana document.
>> Yes.
>> Mhm.
>> Okay.
Notice of revocation of licenses of insolvent savings and loans companies and finance houses and appointed appointment of a receiver. Yeah. Now we are going to read Ara Ghana 16th of August 2019. The Bank of Ghana has with effect from today revoked the licenses of 23. So it wasn't just D and B 23 in solvent savings and loans companies and finance houses companies. These actions were taken pursuant to section 123 + 1 of the bank and specialized deposit taking institution act 2016.
Yes. Bank of deposit institution act. Yes.
And it was because of an advice financial sector. Okay.
which requires the Bank of Ghana to revoke the license of a bank or a specialized deposit taking institution where the Bank of Ghana determines that the institution is insolvent.
The Bank of Ghana has also appointed Mr. Eric Ma as a receiver for the specified institution in line with section 123 clause 2 of act 930. Act the bank and specialized deposit taking act. The revocation of the licenses of these institutions have become necessary because they are insolvent even after a reasonable period within which the bank of Ghana has engaged with them in the hope that they would be recapitalized by their share their shareholders to return them to sovereign. I don't even want to waste my time here.
Yeah.
What do you call? Don't worry.
Go on. List of 23 insolvent institutions whose licenses have been revoked. Number one. Yes. These are the finance houses are your job all financial savings limited savings and loans limited. All time finance limited.
Alpha Capital Savings Limited Financial Service Limited, CD Ghana Savings and Loans, First Trust, Global Access Savings and Loans, GN Savings and Loans. Number 16, Ideal Finance Limited and blah blah blah blah blah. Midland savings and loans. It was very popular. Midland Yes. Midland and then Uni Credit.
Bank of Ghana.
>> Yeah.
>> Report. Yeah.
Thank you.
Yes.
So this is GNI GH always related to GN bank.
Bank of Ghana and the license of GN bank. Bank of Ghana the license of GN savings and loans.
Are you GN bank? There is difference between GN bank and GN savings and loans.
Mhm. First there was GN bank of GH from GN bank to GNO.
Oh, thank you.
against.
All right. Thank you.
GM Savings and Loans Company Limited was originally incorporated as First National Savings and Loans Company Limited and licensed as a savings and loans company on 8th of May 2006.
Mhm.
>> under President Kufur.
minister.
It was subsequently issued with a universal banking license by the bank of Ghana on the 4th of September 2014 and was renamed GN Bank Limited GN Group Indian. Yes. So, Group England Bank Limited say on the 4th January 2, 2019, the Bank of Ghana approved a request.
To reclassify, okay, GM bank from a universal bank. Now, when we say universal bank, what we are saying is a commercial bank. Yes.
from a universal bank to a service and rules company following it inability to reach new required minimum paid up capital of 400 million by 31st December 2018.
capital request but they revoke their license but she has not meeting the requirement.
But they agreed to what GN wanted and then they reclassified them from a universal bank to a savings and loans. Okay. The reclassification was to among other things enable the institution to downsize its operations and also inject additional capital to resolve the acute liquidity challenges it was confronted with. The bank of Ghana subsequently appointed an advisor to GM to assist in the reclassification. Bank of okay let's go to the screen now the bank of Ghana has reached the conclusion that GM is currently insolvent under section 1 2 3 + 4 of the banks and specialist deposit taking institution act 2016 because the banking sector taking in 2017 financial assessment in 2017. Yes.
June 2016 report.
Okay.
I think I'll get another time.
Let's talk about this now.
as Mercedes and now see being in the breach of it key credential regulatory requirements. Now it capital adequacy ratio is currently 61% in breach of the minimum required of 13%. What is minimum% falling flatus%?
61%.
Okay. It is also facing a severe liquidity crisis with numerous complaints received by the financial stability department of the bank of Ghana from agrieved customers who have been unable to access their deposit with the institution for the last several months of still you're not able to do it.
Now what is more it has consistently failed to meet the minimum cash reserve requirement of 10% of its total deposit since the end of the first quarter of 2019% 10% local capital 61% cash reserve now GN shareholders have failed to restore the bank to the required regulatory capital and liquidity levels in spite of long-standing promises that new capital was expected from foreign investors. Now, Chicago. Thank you.
Okay. GM has indicated that government owes it a total amount of 942.981 9.3 while has indicated that government owes it a total amount of 943 million of which 103 million. are running up 103 million represented interim payment certificate IPCs the bank of Ghana's assessment is that IPC is totaling 30.331 million Ghana cities only have been confirmed by the ministry of finance as of August 2019 as owed to contractors that may be inducted to affiliate of GN of GH of 43 million.
Ministry of Ministry of Finance Bank.
GM and then there are other subsidiaries to GM banks.
Amen.
certificate.
It still did not address GN's capital deficit of 683 million.
Ministry of Finance of 683 when you going to get the money and that was the problem. Now stronger than appetite.
It must be noted that GN's insolveny problem are largely attributable to overdraft and other facilities is extended to it related parties who are other companies in the group Indo network of businesses under circumstances that violated related provinial norms.
stronger than TV radio that other businesses.
That is a problem.
relevant credential norms of particular interest are the funds totaling 761.5 million that GN bank as it it then was as it was a bank with it sister companies Ghana growth fund that is Gold Coast Advisor and Ghana Gold Coast fund management Now, Black Shield Capital Management, both licensed by Securities and Exchange Commission, portfol 761 investment.
Thank you.
Ghana say so some of these funds were used by two related parties to pay their customers whose investment with them had matured while some were also used to fund road and other contractors who claimed to have worked on government projects.
It is important to note that the IPCs claimed by GN are not supported by transactions that were entered into directly by GN and such contractors or government and it entities Bank of it was a third direct agreement.
That is the point.
Now or say the failure the if I can say the failure of these two okay the failure of these two related parties to pay back this funds to GN affected GN's capital position so those two companies the failure of these two related parties to pay back this funds to GN affected GN capital position leading eventually to it insolveny and acute liquidity challenges in addition to insolveny and liquidity challenges the bank of Ghana has found other key regulatory violations such as the following. One, the institution's adjusted the institution's adjusted net worth of 30.7 million as at the end of May 2019 indicates it paid it paid capital is impaired in violation of section 281 at 930.
In fact, Bank of Ghana say the institutions adjusted capital adequacy ratio of 61.2%.
as at the end of May 2019 is in violation of section 29 +2 of act 930.
So point number one violating section 28 + 1 of at 930. Point number two section 2930.
Now point contrary to section 64 plus2 of the banks and specialized deposit taking institution act 2016 act 930 the institution's exposure to it related party has consistently been above the regulatory limit of 25% of net funds alone the exposure companies subsidiaries of about 25% beyond that vi exposes to other affiliate companies were many payments made by the bank on behalf of such affiliate so on those banks.
The structure of GN's balance sheet clearly shows that the bank mobiliz deposit for it related companies related companies.
The inability of these related companies to hammer their obligation to DM has resulted in serious liquidity challenges and contributed to their insolveny as all related party exposures are nonperforming. So nonperforming non-erforming roles challenges the the institution's high non-performing roles was mainly attributed to this related party exposures which were never paid. thereby putting the customer at risk.
Dangerous.
A recent Bank of Ghana investigation conducted at GN revealed that a significant amount into bracket 62 million >> 255,516.93 US and then 718,528 8 million great a,000 yes great pound and then 4,200 held with GM had been transferred to international business solutions another company owned by group and which is based in the USA bank of Ghana say they a subsidiary in the US in the foreign land.
2 million £318,000,00 without any documentation. to support such transfers in breach of section 19 of the foreign exchange act 2006 act 723 section 4 of the bank of Ghana notice and subsequent bank of Ghana notices issued in August 2014 prohibiting such practices of financial bank Whether or not bank whatsoever, no financial institution have the RIGHT of that depositor money.
Bank of now the company is yet to published its 20 2018 audited account contrary to section 90 +2 of the bank and specialized deposit taking institution act 2016. Furthermore, the company did not keep accounting records in a manner that gives an accurate and reliable account of transactions of the company and did not therefore show a true and fair view of its operations.
because it will expose him further.
Now I say GN GN has suspended operation in 70 of it branches including the head office branch at Asylum Down and Castle Road branch and temporarily suspended its entire management team without the approval of Bank of Ghana contrary to the to section 252 of the Bank and Specialized Deposit Taking Institution Act 2016 Act 930.
many as a result of it. Insolveny and liquidity challenge of the branches of Bank of License. You go on.
So recently all the other.
Okay.
Thank you.
GM bank.
But small savings base capital.
Okay.
H CBG CBG >> Consolidated Bank Limited.
Mhm.
Final judgement.
Final judgement of Yeah. So there appealing from announcement last week.
2026 requirements capital certain qualifyment of GH 2026.
2017 18 qualify for Canadian Bank of Ghana.
GN said, "Okay.
Supreme Court. Supreme Court. Yeah.
It is valid question. Oh, very fast. And you see me. Okay.
I think of Ghana even deposit because minimum capital requion.
Yes.
>> So now Supreme Court that is why Bank of Ghana is still contesting. First of all, Bank of Ghana opening a flag. Yes. For the others and contest. So when you go they should all come back and operate regulator in Ghana. The regulator of financial institutions is a bank of Ghana not court of appeal.
Bank of Ghana does not even fall under the judiciary.
Autonomous.
>> Yeah.
>> They are the bank on behalf of the country.
>> They are the last resort or B or C. But even if they want to punish they can say okay judgment. We are the regulators.
You have to first pay all the deposits with your books and see you can work. to me.
So muchion million 400 million.
Yeah.
All right.
almost right to royal gel to hand and foot cream to skin toner to hair products and Facebook what you going through 1.5.0.
One of the most popular addresses in town.
gast.
It goes against prostate enlargement and then vital and then capsules.
very excruciating pain.
Vital 0244 718557 0241604712 0244 718557 Movement guarantee almost 8:43 24-hour economy once 24.
It is just a name. Okay.
It doesn't necessarily it doesn't necessarily mean It doesn't happen anywhere in the world.
The most of one of the most places York never sleeps time square. Time Square.
movies.
Biggest big big big big 24 hours.
Social 24 market 24 hours.
24 hours.
24 hours.
four region region region 24 hours 24 hours major commercial capital.
One week. One week.
24 hours.
One of the campaign 276.
So far almost four week. a week.
24 hours.
24 hours.
24 hours.
24 hours.
24 hours.
Campaign strategy.
market.
Yeah.
Yeah.
24 hours.
Dr. 24 hours.
number,200.
Imagine 1 a.m.
8:00 Sunday.
Wednesday.
24y market.
You see media when it comes to 24-hour economy, I'm not surprised of what the NDC is doing >> because for a long time. MP4 So he wanted something to election. Mhm.
Somebody to become a president.
You had the opportunity to meet him several time. Nobody asked him 24-hour economy, how viable is it?
Youth manifesto 2024 different manifestos youth manifesto man they are bridge version the key policies and then the main manifesto and I have the main manifesto right before me. Okay.
A deliberate policy to encourage and support businesses and public organizations to operate 24/7 in shift of 8 hours to boost production, promote productivity and generate wellpaying jobs. This is aimed at transforming Ghana into an import substitution and export-led economy.
Wellpaying jobs. 24.
How much are they going to be paid by who going to region region Last week, the biggest 24hour marketer me I don't even want to talk about it >> because market yeah >> SO I DON'T EVEN WANT to limit the whole conversation to market THAT WASN'T A PROMISE FACTORIES ACROSS ALL THE STREETS.
You will partner with the private sector even though it was private sector. So even when you partner with private sector, we were expecting you and your government TO GO AND BUILD ALL THOSE countries 261 districts.
Today Ghana journalist 261 Ghanaian GSA That is your ticket to a wellpaying job.
You see the point in the public sector about 800,000 people.
We are GOING TO EMPLOY 1.6 MILLION Ghanian youth. Yeah, YOU COME AND YOU SER these people and you tell me you're building market and you want me to applaud you market for what?
So I don't even understand why we are having this 24-hour economy conversation and we want to tip in markets for what?
Maybe your hospital MARKET POLICE ENGINEERS JOBS are happy and they tolerating his excellency mama.
Who is going to sell there?
Is that what you promising us? Is that what you told us? So don't even talk about market.
We want THE PRESIDENT TO TELL us when they started something left, right, center and you me on radio and TV and He told you 24-hour economy where the president is saying he will build 261 markets. God damn it. IT WAS NOT A PROMISE.
261.
How many months?
Presommy you see of Ghanaians I don't know he Look when you take POLICY he made me he was so category HE WAS SO EMPHATIC I AM GOING TO CREATE FOR YOU so why would you come and you market YOU PROMISES YOU WERE SO SPECIFIC exasperated 24-hour economy. Decent paying jobs.
Decent paying job.
Decent decent paying jobs for Ghana youth president willing to work decent paying jobs.
Three sips, 8 hours per each sift.
Okay. Okay. Okay.
Okay.
Alliance.
Yes.
Secretary, just make yourself available.
Very fantastic.
Good night. We out of here.
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