{"id":687591,"date":"2019-08-21T11:39:37","date_gmt":"2019-08-21T11:39:37","guid":{"rendered":"
\n\t\t\n

THE\nBANK of Ghana (BoG) has stated specific issues that led to the revocation of\nthe licence of Dream Finance Limited (DFL). <\/p>\n\n\n\n

The banking sector regulator said DFL used\ndepositors\u2019 funds to finance related party projects which o"},"modified":"2019-08-21T11:39:37","modified_gmt":"2019-08-21T11:39:37","slug":"dream-finance-messed-up-depositors-funds","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2019\/08\/21\/dream-finance-messed-up-depositors-funds\/","title":{"rendered":"Dream Finance Messed Up Depositors\u2019 Funds"},"content":{"rendered":"

<\/p>\n

\n

THE
\nBANK of Ghana (BoG) has stated specific issues that led to the revocation of
\nthe licence of Dream Finance Limited (DFL). <\/p>\n

The banking sector regulator said DFL used
\ndepositors\u2019 funds to finance related party projects which over exposed it to
\nsix of its related companies paving way for the non-performing related party
\nexposures to contribute significantly to its liquidity challenges. <\/p>\n

Dream Finance\u2019s net worth of negative GH\u00a2333.46 million
\nas of end May 2019 indicates that its paid-up capital is impaired in violation
\nof Section 28(1) Act 930. <\/p>\n

The institution\u2019s capital adequacy ratio of
\nnegative 7,508.10% as of end May 2019 is in violation of Section 29(2) of Act
\n930. <\/p>\n

Dream Finance persistently breached the cash
\nreserve ratio requirement since 2015 due to serious liquidity challenges. It was
\nunable to honour customers\u2019 withdrawal requests, while it changed its name from
\nDream Finance Limited to El Finance Limited and relocated its head office without
\nthe prior approval of BoG. <\/p>\n

\u201cBased
\non a 2015 review of the institutions operations, Bank of Ghana found Dream
\nFinance to be insolvent and also facing liquidity challenges mainly as a result
\nof the institution\u2019s non-performing exposures to its related companies. The
\nBank of Ghana subsequently engaged the directors of the institution and agreed
\non a timeline to resolve the solvency and liquidity challenges. The institution
\nfailed to comply with the agreed plan. The institution\u2019s capital adequacy ratio
\nand net worth are both negative as of end-May 2019,\u201d the BoG report noted. <\/p>\n

Furthermore, there were weaknesses in its corporate
\ngovernance practices as it was without a functioning board and key management
\npersonnel with the relevant qualifications and experience to do the business of
\nbanking, it was involved in creative accounting practices, thereby
\nmisrepresenting and misreporting its true financial position to the regulator,
\nwhile also it failed to implement BoG\u2019s on-site examination recommendations.
\nThe institution is currently not engaged in normal business activities as a
\nresult of its capital and liquidity challenges.<\/p>\n

DFL was licensed by the BoG on October 25, 2013 as a finance company.<\/p>\n

BY Samuel Boadi <\/strong><\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

THE BANK of Ghana (BoG) has stated specific issues that led to the revocation of the licence of Dream Finance Limited (DFL). The banking sector regulator said DFL used depositors\u2019 funds to finance related party projects which over exposed it to six of its related companies paving way for the non-performing related party exposures to […]<\/p>\n","protected":false},"author":1,"featured_media":687592,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-687591","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business"],"yoast_head":"\nDream Finance Messed Up Depositors\u2019 Funds - Ghanamma.com<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ghanamma.com\/2019\/08\/21\/dream-finance-messed-up-depositors-funds\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Dream Finance Messed Up Depositors\u2019 Funds - Ghanamma.com\" \/>\n<meta name=\"twitter:description\" content=\"THE BANK of Ghana (BoG) has stated specific issues that led to the revocation of the licence of Dream Finance Limited (DFL). 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