Accra, Ghana – Over 4,500 direct and indirect jobs were eliminated following the collapse of GN Bank and the subsequent revocation of its operating license, according to Groupe Ndoum President Dr. Papa Kwesi Ndoum. The revelation, made on JoyNews’ Newsfile on Saturday, May 23, highlights one of the most significant human costs of Ghana’s extensive financial sector clean-up.
Background of the Financial Sector Crisis
Ghana’s banking sector underwent a significant restructuring exercise starting in 2017. The Bank of Ghana (BoG) revoked the licenses of several financial institutions, citing issues such as inadequate capital, poor corporate governance, and liquidity problems. This move aimed to sanitize the industry, restore confidence, and ensure the stability of the financial system.
GN Bank, initially a universal bank, was first downgraded to a savings and loans company. This reclassification preceded the eventual revocation of its license, a process that impacted thousands of employees and their dependents.
Devastating Impact on Employment
Dr. Ndoum detailed the scale of job losses within Groupe Ndoum’s financial services arm. He stated that prior to the reclassification in January 2019, GN Bank employed approximately 3,000 individuals.
Following the reclassification, the workforce was reduced by about 1,600 employees. When the license was ultimately revoked, these 1,600 jobs were permanently lost.
The impact, however, extended far beyond the bank’s direct payroll. Dr. Ndoum emphasized the significant number of indirect jobs that vanished with the bank’s demise.
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