The High Court of Ghana has ruled in favor of Ideal Finance Limited, overturning the Bank of Ghana’s (BoG) 2019 decision to revoke the company’s operating license.

The ruling, issued on March 10, 2025, marks a significant victory for the beleaguered financial institution, which had been embroiled in a lengthy legal battle with the central bank.

In its decision, the court found that the Bank of Ghana had failed to adhere to proper legal procedures when it revoked the license of Ideal Finance as part of its sweeping 2019 financial sector cleanup. The central bank had cited insolvency and poor governance as the reasons for the revocation, but the court determined that these actions were unjustified and lacked procedural correctness, restoring the institution’s legal standing.

Ideal Finance was one of 23 financial institutions whose licenses were revoked during the cleanup initiative, which aimed to stabilize Ghana’s banking sector in the wake of mounting financial instability. While the overhaul was intended to restore public confidence, the consequences were far-reaching, leading to the collapse of several firms and impacting thousands of depositors.

This latest ruling is expected to have broader implications for other defunct institutions that were part of the cleanup, raising critical questions about the regulatory processes used by the Bank of Ghana in the restructuring of the financial sector. The decision underscores the growing scrutiny of the central bank’s actions and its adherence to due process in enforcing regulatory measures.

Source:TheDotNews