The Bank of Ghana has confirmed that it will appeal a decision by the High Court that reversed the central bank’s revocation of the licence for CDH Savings and Loans.

This decision comes after 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 that the BoG sent to CDH Savings and Loans to rectify its Capital Adequacy Ratio (CAR), which had persistently dropped below the minimum capital requirement.

Sources within the BoG mentioned that CDH Savings and Loans did not act on these notices, despite facing significant liquidity challenges that posed broader systemic risks to financial sector.

Additionally, the central bank’s final notice, which required asset liquidation within two weeks, was reportedly one of several measures extended to CDH Savings and Loans before its license was revoked by the BoG.

The Central Bank sources, citing Act 930, maintained that the license revocation process was "regularly and lawfully done" to protect financial stability and deny that its actions were either "unfair or unreasonable."

In response, the BoG emphasised that it plans to file an appeal at the Court of Appeal to contest the High Court’s decision.

The apex bank argued that previous license revocations, which are part of the banking sector clean-up exercise, have been upheld by both the High Court and the Supreme Court.

MA

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