The Court of Appeal has reportedly restored the operating licence of GN Savings and Loans, overturning an earlier decision that had led to the revocation of the company’s licence by regulators during Ghana’s financial sector clean-up exercise.
The ruling effectively reinstates the institution’s legal standing to operate, bringing a significant twist to one of the financial sector cases that emerged from the Bank of Ghana’s restructuring and cleanup of savings and loans companies and other non-bank financial institutions.
GN Savings and Loans had been among several firms whose licences were revoked as part of measures taken by the central bank to address insolvency, governance challenges, and liquidity stress within parts of the financial services sector.
According to court proceedings, the appellate court held that there were legal and procedural issues surrounding the initial revocation, leading to the decision to set aside the earlier action and restore the licence.
The ruling means the company is, at least legally, permitted to resume operations while the broader legal and administrative processes around the case continue.
GN Savings and Loans, which is part of the GN Financial Group linked to business executive Dr. Papa Kwesi Nduom, has consistently challenged the revocation of its licence, arguing that it was unfairly treated during the financial sector clean-up exercise.
The institution has maintained that it was solvent and capable of meeting its obligations at the time of the regulatory action, and has pursued legal redress through the courts.
The Bank of Ghana, which led the financial sector reforms beginning in 2017 and intensifying in 2019, has not yet issued a detailed public response to the latest ruling.
However, the central bank had previously justified the revocation of licences of several institutions on grounds of insolvency, poor corporate governance, and risks posed to depositors and the wider financial system.
