The Supreme Court of Ghana has delivered a final verdict affirming the Bank of Ghana’s (BoG) decision to revoke the operating license of UniCredit Ghana Limited.
Overturning a previous Court of Appeal ruling, the highest court upheld the initial decision of the High Court.
The case centered on the BoG’s declaration of UniCredit’s insolvency in August 2019 due to the bank’s failure to meet required financial thresholds.
Following legal challenges by the bank’s majority shareholder, Hoda Holdings, the case progressed through the courts, with the Court of Appeal initially ruling in favor of Hoda Holdings.
However, the Supreme Court, in a unanimous decision, found that the BoG had acted within its legal rights and followed due process in revoking the license. The court emphasized that UniCredit’s insolvency was evident and that the central bank had provided ample opportunities for the bank to rectify its financial situation.
The ruling reinforces the BoG’s regulatory authority and its commitment to maintaining stability within the Ghanaian financial sector. It also sets a precedent for the interpretation of banking regulations in the country.
While the BoG has expressed satisfaction with the verdict, Hoda Holdings has expressed disappointment but acknowledged the finality of the Supreme Court’s decision.
Key points:
- Supreme Court upholds BoG’s decision to revoke UniCredit’s license
- BoG acted within its legal rights to protect depositors and ensure financial stability
- Ruling overturns previous Court of Appeal decision
- Reinforces BoG’s regulatory authority and sets a precedent for banking regulations
