BoG to appeal court ruling on CDH Savings and Loans license revocation

Following a recent High Court decision reversing the Bank of Ghana’s (BoG) revocation of CDH Savings and Loans’ license, a BoG source has confirmed that the Bank plans to appeal.

The High Court, led by His Lordship Justice Nana Brew, ruled that the BoG’s final directive for CDH to liquidate assets to address solvency and liquidity issues was “unreasonable and unfair.”

The ruling did not address the repeated notices BoG sent to CDH Savings and Loans to rectify its Capital Adequacy Ratio (CAR), which had persistently fallen below the minimum requirement.

According to sources, CDH Savings and Loans did not act on these notices, despite facing significant liquidity challenges that posed broader systemic risks.

The BoG’s final two-week notice for asset liquidation was, reportedly, one of several measures extended to CDH Savings and Loans before its license was revoked.

Citing Act 930, the BoG maintains that the license revocation process was “regularly and lawfully done” to protect financial stability and denies that its actions were either “unfair or unreasonable.”

In light of this, BoG plans to file an appeal in the Court of Appeal to contest the High Court’s ruling, noting that previous license revocations as part of the banking sector cleanup have been upheld by both the High Court and Supreme Court.