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The Supreme Court has ordered a stay of execution of the Court of Appeal’s decision directing the Bank of Ghana (BoG) to restore the operating licence of GN Savings and Loans Limited, pending the determination of an appeal filed by the central bank.
The ruling effectively suspends the implementation of the Court of Appeal’s judgment, meaning the Bank of Ghana is not required to reinstate the company’s licence until the Supreme Court delivers its final decision on the matter.
The latest development marks another significant chapter in the long-running legal dispute between GN Savings and Loans and the Bank of Ghana, which stems from the revocation of the company’s operating licence during the country’s financial sector clean-up.
The Court of Appeal had earlier ruled in favour of GN Savings and directed the central bank to restore its licence. However, dissatisfied with the decision, the Bank of Ghana filed an appeal at the Supreme Court while also seeking a stay of execution to prevent the appellate court’s ruling from taking effect before the appeal is heard.
By granting the stay of execution, the Supreme Court has maintained the current legal position, ensuring that the Court of Appeal’s order cannot be enforced until the substantive appeal has been fully determined.
The appeal is expected to address key legal questions surrounding the Bank of Ghana’s decision to revoke GN Savings’ licence and whether the Court of Appeal acted correctly in ordering the regulator to reverse that decision.
The outcome of the case is expected to have broader implications for Ghana’s financial sector, particularly regarding the powers of the central bank during the financial sector reforms that led to the revocation of the licences of several banks, savings and loans companies, and microfinance institutions.
Those reforms, which began in 2017, were introduced to strengthen the country’s banking sector, improve financial stability and protect depositors.
However, the exercise also resulted in numerous legal challenges from affected institutions seeking judicial review of the Bank of Ghana‘s decisions.
The Supreme Court’s final judgment will determine whether the Court of Appeal’s directive to restore GN Savings and Loans’ operating licence will stand or be overturned.
Until then, the Bank of Ghana’s appeal remains pending, and GN Savings and Loans will continue to await the outcome of the country’s highest court before any decision on its operating licence takes effect.
