Supreme Court Pulls Breaks On GN Bank's Licence Restoration
The Supreme Court has suspended the implementation of a Court of Appeal ruling that ordered the restoration of GN Savings and Loans Limited’s operating licence, pending the determination of an appeal filed by the Bank of Ghana (BoG).
The decision grants the central bank’s application for a stay of execution, meaning GN Savings and Loans will not regain its licence until the Supreme Court delivers its final judgment on the case.
The ruling preserves the current legal position while the apex court considers whether the Court of Appeal was correct in directing the Bank of Ghana to reinstate the company’s licence.
The central bank challenged the appellate court’s June 2026 judgment, arguing that the decision should not take effect before the substantive appeal is heard.
The dispute stems from the revocation of GN Savings and Loans’ licence during Ghana’s financial sector clean-up programme, which began in 2017 and intensified between 2018 and 2019.
The exercise saw the Bank of Ghana revoke the licences of several banks, savings and loans companies, finance houses, microfinance institutions and fund management firms as part of efforts to strengthen the financial sector, protect depositors and address concerns over insolvency, weak corporate governance and regulatory non-compliance.
Following the revocation of its licence, GN Savings challenged the decision through the courts, culminating in a Court of Appeal ruling directing the central bank to restore the company’s operating licence.
Unhappy with that decision, the Bank of Ghana appealed to the Supreme Court and requested a stay of execution to prevent the reinstatement from taking effect until the appeal is determined.
By granting the application, the Supreme Court has effectively maintained the status quo, leaving GN Savings unable to resume operations under the Court of Appeal’s judgment for now.
The substantive appeal is expected to provide clarity on the scope of the Bank of Ghana’s statutory authority to revoke licences and determine whether the Court of Appeal properly interpreted the law in ordering the restoration of GN Savings’ licence.
-Overseeronline.com
Post Comment