The Human Rights Division of the High Court has overturned the Bank of Ghana’s (BoG) revocation of the operating licence of Ideal Finance Limited, ruling that due process was not followed.
The judgment, delivered on Monday, March 10, 2025, marks a significant victory for the defunct financial institution, which has been challenging the central bank’s decision in court.
According to the ruling, the BoG failed to exhaust the proper legal procedures before revoking Ideal Finance’s license, making the action unjustified.
This decision effectively restores the company’s legal standing.
Background
In August 2019, the Bank of Ghana revoked the licenses of 23 savings and loans and finance house companies, including Ideal Finance, GN Savings and Loans, First Allied Savings and Loans, Midland Savings and Loans, and Unicredit Savings and Loans.
At the time, the central bank justified its action by citing the insolvency of these institutions, stating that they had failed to recapitalize despite multiple engagements. The move was part of a broader financial sector cleanup aimed at strengthening Ghana’s banking industry.
However, the court’s latest ruling on Ideal Finance’s case has reignited debates about whether the BoG’s actions were procedurally fair. It remains to be seen whether the central bank will appeal the decision or seek alternative resolutions.
More soon…
