A member of the National Democratic Congress communications team, Louis Agana, has welcomed the restoration of the license of GN Savings and Loans, describing the court ruling as good news for local businesses, workers and customers affected by the financial sector cleanup.
Speaking on Dreamz FM’s State of Our Nation program, Mr Agana said the closure of GN Bank and its downgrade to a savings and loans company negatively affected many communities, especially in northern Ghana where access to banking services was limited.
“I think GN Bank shouldn’t have been closed in the first place,” Mr Agana said. “There were places where the only bank available was GN Bank, and many people depended on it for salaries, savings and business activities.”
An appeals court recently restored the company’s operating license years after regulators revoked it during Ghana’s banking sector reforms.
Mr Agana said the revival of the institution could help revive jobs and provide financial support for small-scale traders and market women.
He blamed both political leaders and regulators, particularly the Bank of Ghana, for the collapse of several indigenous financial institutions during the banking sector cleanup.
“The regulatory authorities and the political class must share the blame,” he said. “If institutions did not meet requirements, then the regulators who supervised and licensed them should also answer questions.”
He argued that the government at the time could have supported struggling local banks instead of revoking their licenses, adding that the economic and social costs of the closures were significant.
According to Mr Agana, the state may now face financial consequences if compensation is awarded following the court ruling.
“If the state loses the case and compensation has to be paid, then taxpayers will bear the burden,” he said. “But technocrats whose actions or inactions led to this should also be held accountable.”
Mr Agana also urged business owners to remain cautious in their dealings with politicians, saying perceptions of political affiliation can sometimes affect businesses.
He said the prolonged legal battle surrounding GN Savings and Loans highlighted weaknesses in Ghana’s regulatory and judicial systems and called for reforms to prevent similar situations in the future.
