The Human Rights Division of the High Court has overturned the Bank of Ghana’s (BoG) decision to revoke the operating license of Ideal Finance Limited, citing a breach of due process.
The ruling, delivered on Monday, March 10, 2025, marks a significant legal victory for the defunct financial institution, which had been contesting the central bank’s decision for years.
In its judgment, the court ruled that the Bank of Ghana failed to adhere to the proper legal procedures before revoking Ideal Finance’s license.
The court stated that the central bank’s failure to exhaust the appropriate regulatory processes rendered its decision unjustified, effectively restoring Ideal Finance’s legal standing to operate.
Background: Financial Sector Cleanup
Ideal Finance was among 23 financial institutions whose licenses were revoked by the Bank of Ghana in August 2019 as part of a broader financial sector cleanup.
Other affected institutions included GN Savings and Loans, First Allied Savings and Loans, Midland Savings and Loans, and Unicredit Savings and Loans.
The central bank justified the move by citing insolvency, stating that the affected institutions had failed to meet recapitalization requirements despite several engagements.
The cleanup aimed to stabilize Ghana’s banking sector and protect depositors’ funds.
The ruling paves the way for Ideal Finance to potentially resume operations, pending further legal and regulatory clarifications.
However, the Bank of Ghana retains the option to appeal the decision or seek alternative resolutions.
The court’s decision has sparked debate over whether other affected financial institutions could challenge similar actions taken by the central bank during the financial sector cleanup.
Legal experts suggest that the ruling could set a precedent for future disputes involving regulatory decisions.
It remains to be seen whether the Bank of Ghana will appeal the ruling or comply with the court’s decision.
If the judgment stands, it could open the door for other financial institutions to seek redress for perceived regulatory overreach during the financial sector reforms.
Story by: Joshua Kwabena Smith
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