IMF Urges Ghana to Reform Bank Resolution Laws After Court Blocks Central Bank Actions

The International Monetary Fund (IMF) has expressed serious concerns over recent court decisions in Ghana that reversed actions by the Bank of Ghana (BoG) to revoke the licenses of troubled financial institutions. According to the IMF’s latest country report, these rulings could undermine financial system stability and expose critical weaknesses in the nation’s legal framework for handling financial crises.

The rulings cited include a November 2024 High Court judgment overturning the BoG’s license revocation of CDH Savings and Loans, and a March 2025 decision by the Human Rights Division of the High Court which reversed similar action taken against Ideal Finance. In both cases, the courts ruled that the central bank had failed to follow due process and recommended arbitration or reinstatement of the affected institutions.

In response, the IMF has called on Ghanaian authorities to urgently reform the legal and regulatory framework guiding the resolution of financial institutions. The Bank of Ghana’s Governor has reportedly made the enhancement of the resolution framework a top priority, with technical support from both the IMF and the World Bank

Proposed amendments will include updates to key legislation such as the Ghana Deposit Protection Corporation law and other crisis management protocols. These reforms are scheduled to be submitted to Parliament by the end of December 2025, with the aim of aligning Ghana’s financial regulation with international best practices.

The overall goal of these legal reforms is to empower regulators to take timely and lawful action during future financial distress, while minimizing legal risks and protecting market stability. Strengthening the resolution framework is also expected to boost investor confidence and support Ghana’s broader efforts to recapitalize and clean up its financial sector.

Source: Citi newsroom