A source at the Bank of Ghana (BoG) has disclosed that they will appeal the Accra High Court ruling on CDH Savings and Loans’ license matter.
This follows the Accra High Court’s ruling to reverse the Bank of Ghana’s (BoG) revocation of CDH Savings and Loans’ license.
The High Court under the leadership of Justice Nana Brew, has delivered a significant verdict, declaring that Bank of Ghana’s directive for CDH Savings and Loans to liquidate assets due to solvency and liquidity concerns was deemed “unfair and unreasonable“.
This ruling, the source indicated that did not take into account BoG’s multiple notices to CDH Savings and Loans, urging them to rectify their Capital Adequacy Ratio (CAR) which had consistently fallen below the required minimum.
According to the source, CDH Savings and Loans failed to address its significant liquidity challenges, despite BoG’s multiple notices.
The source further stated the Bank of Ghana gave a final two-week notice for asset liquidation before revoking the bank’s license. Citing Section 123 of Act 930, the BoG asserts that the license revocation process was “regularly and lawfully done” to ensure financial stability.
The Central bank disputed claims that its actions and directives were “unfair or unreasonable”.
In response to the High Court’s order, the BoG plans to appeal in the Court of Appeal,highlighting that previous license revocations during the banking sector cleanup have been upheld by both the High Court and the Supreme Court.
