Following a recent High Court decision overturning the Bank of Ghana’s (BoG) revocation of CDH Savings and Loans’ operating license, a BoG representative has confirmed plans to challenge the ruling through an appeal.
The High Court, presided over by Justice Nana Brew, ruled that BoG’s directive requiring CDH to liquidate its assets in response to solvency and liquidity concerns was “unreasonable and unfair.” However, the ruling did not take into account the repeated warnings issued by BoG to CDH Savings and Loans about its Capital Adequacy Ratio (CAR), which consistently fell below the regulatory minimum.
According to BoG sources, CDH Savings and Loans did not respond to these notices, despite ongoing liquidity issues that posed broader risks to the financial sector. BoG’s final two-week notice for asset liquidation was reportedly part of a series of measures offered to CDH before the eventual license revocation.
Citing Act 930, the BoG maintains that the revocation process was conducted “lawfully and regularly” to safeguard financial stability, rejecting claims that its actions were either “unfair or unreasonable.”
In response to the ruling, BoG plans to file an appeal in the Court of Appeal to contest the High Court’s decision. The bank noted that similar revocations from the sector cleanup efforts have previously been upheld by both the High Court and Supreme Court.
SOURCE: https://dew360.net
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