The Court of Appeal has overturned a previous High Court decision and instructed the Bank of Ghana to reinstate the licence of GN Bank, marking a major shift in the long-running dispute over the banking sector clean-up.
The appellate court further ordered that all assets belonging to the institution be returned to its rightful owners and directed the Receiver to transfer control of the company back to its former management team.
The judgment represents a significant turn in the legal standoff between GN Bank and the central bank, which stems from the 2018 financial sector reforms.
Originally, GN Bank was downgraded on January 4, 2019, and rebranded as GN Savings and Loans Company Limited.
Later that same year, on August 16, 2019, during the tenure of former Bank of Ghana Governor Ernest Addison, the institution’s licence was withdrawn and Eric Nana Nipah was appointed as Receiver.
Following that action, the owners led by Papa Kwesi Nduom filed a lawsuit at the High Court in Accra on August 30, 2019, arguing that the revocation was unlawful and unjustified.
However, on January 24, 2024, the High Court ruled in favour of the Bank of Ghana.
Justice Gifty Addo Adjei found that weak corporate governance had left GN Savings and Loans unable to meet its obligations and said the institution failed to demonstrate solvency at the time its licence was revoked.
She also ruled that the central bank acted within its legal mandate under Article 130 of the 1992 Constitution and dismissed claims of unfair treatment.
The court further stated that other affected financial institutions during the banking sector cleanup faced similar regulatory measures, rejecting allegations of discrimination.
Despite that ruling, GN Bank pursued an appeal, which has now resulted in the latest decision by the Court of Appeal in its favour.