Court of Appeal Orders BoG to Restore GN Bank’s Licence and Assets

The Court of Appeal has ordered the Bank of Ghana to restore the operating licence of GN Bank and return all assets linked to the institution, overturning an earlier High Court ruling that supported the revocation of the bank’s licence during Ghana’s banking sector clean-up.

The three-member appellate panel also directed that all assets belonging to the bank be handed back to their rightful owners and instructed the appointed Receiver to return management control to the former leadership of the institution.

The ruling marks a significant development in the prolonged legal battle between GN Bank and the Bank of Ghana over the financial sector reforms introduced in 201GN1

GN Bank was first downgraded and reclassified as GN Savings and Loans Company Limited on January 4, 2019, before its licence was eventually revoked on August 16, 2019. Following the revocation, the Bank of Ghana appointed a Receiver to manage the institution.

The action prompted a legal challenge from the bank’s owners, led by businessman Papa Kwesi Nduom, who maintained that the revocation was unlawful and unjustified.

Earlier, in January 2024, the High Court ruled in favour of the Bank of Ghana, stating that governance and financial difficulties justified the regulator’s actions and that the bank had failed to prove it was solvent at the time of the takeover.

The High Court had also held that the central bank acted within its constitutional authority during the banking sector reforms and dismissed allegations of unfair treatment.

However, GN Bank appealed the ruling, resulting in the latest Court of Appeal judgment which now directs the reinstatement of the bank’s licence as well as the restoration of its assets and management.