CEO of Dalex Finance, Joe Jackson, says rebuilding GN Savings and Loans will be difficult despite the court order restoring its licence.
Speaking on TV3’s Key Points on Saturday, May 23, he said restoring a licence alone does not bring a financial institution back to life.
According to him, trust, capital, workers and customers are all needed for a bank to function properly.
Mr Jackson said the company still faces major challenges even after the court ruling.
“It is important for us to differentiate between two things: a functioning bank is not a license,” he said.
“A functioning bank is credibility, trust, capital, liquidity, staff and the premises that are used.”
He explained that the court decision only restored the licence.
“What has happened is that a license has been restored but the bank has not been resurrected,” he added.
Mr. Jackson also stressed that the company must still meet the rules of the Bank of Ghana before returning to full operations.
The Dalex Finance CEO said the seven-year closure has weakened the institution’s connection with customers and staff.
“One big issue we have is that it has been seven years since this institution was not functioning,” he said.
“Customers have moved on and found alternative ways of conducting their financial services.”
He added that many former workers had also moved on with their lives and careers.
“So it is a tough one. Resurrecting this institution is a tough one,” he stated.
Meanwhile, Papa Kwasi Nduom says he expects the licence of GN Savings and Loans to be fully restored after the Court of Appeal ruling.
The three-member panel ruled that the earlier decision to revoke the licence was unfair and unreasonable.
The court also directed the receiver to hand over the company’s assets, management and operations to shareholders.
The judges added that any third-party interest would be handled in good faith on a case-by-case basis.
Speaking after the ruling on May 21, Dr Nduom described the past seven years as difficult.
“We definitely give thanks to the almighty for giving us the strength to be where we are,” he said.
“There are just too many difficulties; some have died, some have lost their jobs, and assets have been destroyed.”
Despite the setbacks, he promised to rebuild the business.
“What we promise is that we will restore our business,” he added.
