BoG pushes for stronger judicial support in bank insolvency cases

The Governor of the Bank of Ghana (BoG), Dr. Johnson Pandit Asiama, has urged stronger judicial collaboration to ensure the timely and consistent handling of bank insolvency cases.

Speaking at a sensitisation programme for selected judges of the judiciary, organised by the Office of the Registrar of Companies at the Peduase Lodge, Dr. Asiama underscored the judiciary’s pivotal role in ensuring that insolvency proceedings are handled with balance and timeliness.

“Insolvency proceedings are dynamic and require timeliness to achieve utmost effectiveness. Delays in the judicial process can lead to a diminution in the value of assets and jeopardise enterprise viability,” he warned.

Dr. Asiama highlighted that while judicial oversight remains crucial, excessive interference could derail the resolution process.

“In the absence of any findings of breaches of natural justice and due process, adverse court determinations against administrative decisions of the regulator in insolvency proceedings have the tendency to create significant legal uncertainties and risk financial instability,” he cautioned.

He cited the GN Bank case (Dr. Papa Kwesi Nduom & Others v. Bank of Ghana & Others, 2023) as a key example of how judicial rulings shape the boundaries between regulatory authority and due process, noting that “the Human Rights Court has jurisdiction to hear bank resolution cases involving allegations of breaches of administrative justice.”

According to Dr. Asiama, the Bank of Ghana’s mandate under Act 930, the Banks and Specialised Deposit-Taking Institutions Act, empowers it to intervene, restructure, or revoke the licence of insolvent financial institutions to safeguard the system.

He revealed that the BoG is reviewing sections of Act 930 to “clarify the Bank’s mandate in bank resolution and strengthen the legal framework for financial stability.”

“Our goal is to ensure an orderly and credible resolution regime that maintains confidence and supports growth,” he affirmed, adding that the BoG “remains committed to working with the judiciary and all stakeholders to promote economic stability and effective insolvency management.”

Meanwhile, the Bank of Ghana has announced a 350-basis-point cut in its policy rate to 21.5 percent, following significant progress in reducing inflation and stabilizing the economy.

Governor Dr. Johnson Pandit Asiama, speaking at a post-Monetary Policy Committee (MPC) engagement with heads of banks in Accra, said the rate cut marked the third in 2025 and reflected confidence that inflation would stay within the target band of 8 ± 2 percent by year-end.

READ: Sawyerr condemns misuse of disability funds by some assemblies

Food inflation, he noted, dropped to 11 percent while non-food inflation eased to 8.2 percent. The economy expanded by 6.3 percent in the second quarter, driven by growth in services and agriculture, with non-oil GDP rising by 7.8 percent.

Externally, Ghana recorded a trade surplus of US$6.2 billion in the first eight months of 2025, with international reserves reaching US$10.7 billion, equivalent to 4.5 months of import cover.