The Bank of Ghana’s plea to have the challenge by Dr Papa Kwesi Nduom and others to the central bank’s cancellation of GN Bank’s license submitted to arbitration was unanimously upheld by the Court of Appeal.
On Thursday, June 2nd, the court made its judgement.
According to section 141 of Act 930, arbitration, not the court, is the proper forum for such a dispute.
It went on to say that Dr. Nduom and the other petitioners had misrepresented their appeal to the Bank of Ghana’s decision as a human rights case.
As a result, the High Court proceedings were halted and the case was referred to the Ghana Arbitration Centre.
- The BoG raises the policy rate by 200 basis points to 19%.
- It is a legal requirement to provide APR to loan applicants, according to the BoG.
During the cleanup exercise, the GN Bank was downgraded to savings and loans company by the Bank of Ghana for its failure to raise the new 400 million-cedis minimum requirement.
Governor of the Bank of Ghana, Dr. Ernest Addison announced on Friday Janury 4, 2019 that the commercial bank licence of GN Bank had been revoked.
“The GN Bank was unable to comply with the minimum capital directive by 31st December 2018. Consequently GN Bank has applied for and the Bank of Ghana has approved the grant of a savings and loans company licence,” Governor of BoG, Dr Ernest Addison revealed at a news conference.
“The Bank of Ghana will closely monitor implementation of the approved transitional plan which is expected to be completed by the end of June 2019. In this regard, the Bank of Ghana has appointed an advisor for GN,” Dr. Addison added.
The BoG revoked the licences of twenty-three insolvent savings and loans companies and finance house companies including the GN Savings and Loans.
