National Democratic Congress (NDC) stalwart and former Member of Parliament (MP) for Tamale Central, Inusah Fuseini, has questioned whether Ghana’s financial sector clean-up chose the most effective path, following the Court of Appeal’s unanimous ruling on May 21, 2026 that restored GN Savings and Loans’ operating licence.
Speaking on JoyNews Newsfile, Fuseini argued that the 2017 to 2020 clean-up, which resulted in the revocation of licences from approximately 420 financial institutions, may have chosen mass liquidation over recovery alternatives that could have preserved jobs, businesses and depositor confidence.
“The banks were impaired, yes, but was collapsing them the only option?” he asked.
He pointed to an estimated nine billion cedi impairment, arguing those resources could have funded stabilisation plans for struggling institutions rather than closures. He cited international precedent, noting that similar banking crises in other countries are typically managed through structured recovery rather than widespread shutdowns, and that job losses and business disruptions must always weigh on any regulatory decision of this scale.
The Court of Appeal’s three-member panel unanimously restored GN Savings and Loans’ operating licence, overturning both the Bank of Ghana’s (BoG) August 2019 revocation and the January 2024 High Court ruling that had upheld it. The appellate court found the revocation unfair and unreasonable and ordered the receiver to return possession, control and management of the institution’s assets and operations to its shareholders.
Fuseini argued the ruling carries significant constitutional weight through Article 23 of the 1992 Constitution, which he said requires all administrative bodies to act fairly, reasonably and within the law. He said the court’s reliance on that provision demonstrates that regulatory intervention must be subject to rigorous legal scrutiny, particularly when businesses and livelihoods are directly affected.
He also pointed to what he described as inconsistencies in how decisions were handled during the clean-up, noting that in some cases, earlier positions appeared to favour restructuring before those positions changed suddenly. He cited GN Savings and Loans as an instance where there appeared to have been earlier discussions about the institution continuing operations in a different form before the decision to revoke was taken.
On the potential legal fallout, Fuseini warned the ruling could encourage other affected institutions to revisit earlier regulatory decisions, with human rights or administrative law actions potentially still available depending on the specific circumstances of each case. He noted that while some legal timelines may have expired, alternative legal routes have not all been foreclosed.
Chartered Banker Nana Obiri Yeboah warned that the ruling challenges the legal foundation on which the central bank engaged in the banking sector clean-up and could open the door for additional lawsuits against the regulator. Former Finance Minister Mohammed Amin Adam separately cautioned that while court rulings must be respected, the development raises serious questions about the durability of Ghana’s banking reforms.
Dr. Papa Kwesi Nduom announced that the first GN branch to reopen will be in Elmina in the Central Region, with other branches expected to follow gradually.
