The International Monetary Fund (IMF) has raised concern that recent High Court rulings overturning the Bank of Ghana’s revocation of licenses risk undermining financial system stability and exposing gaps in the country’s crisis resolution framework.
According to the IMF Country Report, the legal setbacks highlight weaknesses in Ghana’s regulatory architecture and emphasize the urgent need for stronger laws to guide the resolution of troubled financial institutions.
The rulings in question include a November 2024 judgment overturning the BoG’s decision to revoke the license of CDH Savings and Loans, and a March 2025 ruling by the Human Rights Division of the High Court that quashed the revocation of Ideal Finance. In both cases, the courts cited lack of due process and called for arbitration or reinstatement.
The IMF describes the issue as a major concern and says the Bank of Ghana Governor has prioritized a complete enhancement of the financial sector resolution framework. With support from the IMF and World Bank, authorities are working to prepare amendments to existing laws and crisis management protocols.
These amendments, including changes to the Ghana Deposit Protection Corporation law, are expected to be submitted to Parliament by end-December 2025. The goal, according to the IMF, is to bring Ghana’s framework in line with international standards and to reinforce regulatory authority during future financial distress.
The reform effort is expected to strengthen investor confidence, reduce legal risks in future interventions, and complement the government’s broader financial sector clean-up and recapitalization agenda.
By addressing these legal gaps, Ghana hopes to ensure that financial institutions—particularly SDIs—can be resolved efficiently and lawfully without disrupting market stability or triggering costly delays.
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