The Supreme Court has granted an application by the Bank of Ghana (BoG) to stay the execution of a Court of Appeal judgment that directed the reinstatement of the operating licence of GN Savings and Loans Limited.

The decision means the appellate court's order will remain suspended until the Supreme Court hears and determines the central bank's appeal against that judgment.

The latest development preserves the existing legal position, with GN Savings and Loans unable to rely on the Court of Appeal's ruling pending the outcome of proceedings before the apex court.

The Bank of Ghana filed the appeal after the Court of Appeal ruled that the central bank should restore the company's licence, which had been revoked during the financial sector clean-up programme undertaken by the regulator.

The Supreme Court's eventual decision is expected to settle the dispute by determining whether the Bank of Ghana acted within its statutory powers in revoking the licence and whether the Court of Appeal correctly ordered its restoration.

The outcome of the appeal could have significant implications for the interpretation of the Bank of Ghana's regulatory powers and the legal framework governing licence revocations in Ghana's financial sector.

Background

GN Savings and Loans Limited was among several financial institutions whose licences were revoked by the Bank of Ghana during the financial sector reforms initiated in 2017 and intensified between 2018 and 2019.

The clean-up exercise, which affected banks, savings and loans companies, finance houses, microfinance institutions and fund management firms, was undertaken by the central bank to strengthen the financial sector, protect depositors and address concerns over insolvency, weak corporate governance and regulatory breaches.

Following the revocation of its licence, GN Savings challenged the decision in court. The Court of Appeal subsequently ruled in favour of the company and ordered the restoration of its operating licence in June 2026.

However, dissatisfied with that judgment, the Bank of Ghana appealed to the Supreme Court and sought a stay of execution to prevent the Court of Appeal's decision from taking effect while the substantive appeal is being determined.

With the stay now granted, the legal status quo remains in force until the Supreme Court delivers its final judgment on the matter.