GN case may redefine scope of BoG’s regulatory powers — Atuahene

Banking consultant Dr. Richmond Atuahene says the Supreme Court’s eventual ruling in the dispute between the Bank of Ghana and GN Savings and Loans is likely to become a landmark decision that will shape the future of banking regulation and licence revocations in Ghana.

His comments follow the Supreme Court’s decision to grant the Bank of Ghana’s application to stay the execution of a Court of Appeal judgment that directed the reinstatement of GN Savings and Loans’ operating licence, pending the determination of the central bank’s appeal.

Speaking to Citi Business News, Dr. Atuahene said the decision to halt the reinstatement was expected, stressing that the apex court’s final judgment should provide long-awaited legal certainty on the powers of the central bank and help resolve outstanding issues stemming from Ghana’s financial sector clean-up.

“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 stated.

According to him, the judgment should also provide clearer guidance on how the Bank of Ghana exercises its regulatory mandate, particularly in licence revocation cases.

“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.

He, however, urged both parties to await the Supreme Court’s final determination, noting that the apex court’s verdict will be decisive in settling one of the most significant legal disputes to emerge from Ghana’s financial sector clean-up programme.

“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 court battle, Dr. Atuahene urged policymakers to strengthen Ghana’s Deposit Insurance Scheme to better protect depositors during future banking crises.

He argued that the country’s current “pay-box” model should evolve into a more comprehensive insurance framework similar to those adopted in jurisdictions such as Nigeria, reducing the financial burden on the state whenever financial institutions fail.