High Court overturns Bank of Ghana’s licence revocation of Ideal Finance

The High Court has quashed the Bank of Ghana’s revocation of Ideal Finance’s license, ruling that due process was not followed. The decision restores Ideal Finance’s legal standing.

The High Court (Human Rights Division) has overturned the Bank of Ghana’s (BoG) decision to revoke the operating license of Ideal Finance Limited, marking a significant victory for the defunct financial institution in its long-running legal battle with the central bank.

The ruling, delivered on Monday, March 10, 2025, found that the BoG failed to follow due process in revoking Ideal Finance’s license during its 2019 financial sector cleanup exercise, which targeted insolvent institutions.

The central bank had cited insolvency and poor governance structures as reasons for the revocation. However, the court ruled that the action was unjustified and procedurally flawed, effectively restoring Ideal Finance’s legal standing.

Ideal Finance was among 23 savings and loans and finance house companies whose licenses were revoked on August 16, 2019, as part of efforts to stabilize Ghana’s banking sector.

The cleanup exercise, though intended to restore public confidence, led to the collapse of numerous financial institutions, affecting depositors and stakeholders.

The latest ruling may have far-reaching implications for other defunct institutions caught in the cleanup exercise and raises questions about the regulatory processes employed by the Bank of Ghana.

Source: 3news.com