Supreme Court ruling on GN Savings and Loans case could redefine banking regulation – Dr Atuahene

Banking consultant Dr Richmond Atuahene believes the Supreme Court’s final decision in the legal dispute between the Bank of Ghana (BoG) and GN Savings and Loans could become a major reference point for banking regulation and the revocation of financial institution licences in Ghana.

His comments come after the Supreme Court granted the BoG’s request to suspend the enforcement of a Court of Appeal ruling that ordered the restoration of GN Savings and Loans’ operating licence, until the central bank’s appeal is fully determined.

Speaking to Citi Business News, Dr Atuahene said the Supreme Court’s decision to maintain the status quo was expected, adding that the eventual ruling would provide important legal clarity on the authority of the central bank and address unresolved matters from Ghana’s financial sector clean-up exercise.

“I believe that the decision that will be taken by the Supreme Court would leave a landmark resource for the financial sector. It will go a long way to settle those issues that have been pending in the industry after the financial crisis in 2019,” he said.

According to him, the judgment will offer further direction on how the Bank of Ghana should exercise its regulatory responsibilities, especially when taking decisions to withdraw licences from financial institutions.

He stressed that regulatory actions must be supported by proper processes and that the central bank should consider all possible interventions before revoking licences.

“It will help us to ensure that the Bank of Ghana regulatory powers have to be strengthened very well. And also, to ensure that before such decisions are taken on revocation of licences, they might have taken all the possible actions or possible assistance and strategies to be able to do that,” he added.

Dr Atuahene urged stakeholders to allow the Supreme Court to conclude the matter without speculation, noting that the final verdict will play a crucial role in resolving one of the key legal disputes arising from the financial sector reforms.

“Everybody would have to stay calm and wait for a decision, so that nobody preempts what the Supreme Court is going to do.”

Beyond the GN Savings and Loans case, the banking consultant called for reforms to Ghana’s Deposit Insurance Scheme to provide stronger protection for depositors in future financial sector crises.

He argued that the country’s current “pay-box” approach should be upgraded into a broader insurance system similar to models used in countries such as Nigeria, which he said would reduce the financial pressure on government when banks and other financial institutions collapse.

Prince Antwi

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