According to a Citinews report, the High Court (Human Rights Division) has ruled against the Bank of Ghana’s decision to revoke the operating licence of Ideal Finance Limited, delivering a major blow to the central bank’s financial sector cleanup exercise.
In its judgment on Monday, March 10, the court held that the Bank of Ghana failed to follow due process before stripping the company of its licence.
The ruling effectively restores Ideal Finance’s legal standing and raises fresh concerns about the fairness of the regulator’s actions.
The revocation of Ideal Finance’s licence was part of a broader effort by the Bank of Ghana to stabilize the financial sector, with the central bank citing insolvency and weak governance as key reasons for shutting down multiple financial institutions.
However, the court’s decision now casts doubt on whether the process was executed lawfully.
In August 2019, Ideal Finance was among 23 financial institutions affected by the cleanup, a move that also saw the collapse of GN Savings and Loans, First Allied Savings and Loans, Midland Savings and Loans, and Unicredit Savings and Loans.
The Bank of Ghana defended its actions, arguing that these institutions were given ample time to recapitalize but failed to do so.
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