"Supreme Court Upholds Bank of Ghana’s Decision to Revoke UniCredit’s License"

" Supreme Court Upholds Bank of Ghana's Decision to Revoke UniCredit's License \r\n\r\nIn a landmark ruling, the Supreme Court of Ghana has upheld the decision by the Bank of Ghana to revoke the operating license of UniCredit Ghana Limited, dismissing an appeal by Hoda Holdings Ltd, the savings and loan company's majority shareholder.\r\n\r\nThe court's unanimous decision affirms the High Court's earlier judgement and overturns a contrary ruling by the Court of Appeal. The case has drawn considerable attention, highlighting stringent regulatory oversight amid growing concerns over financial stability in the region.\r\n\r\nIn August 2019, the Bank of Ghana declared UniCredit insolvent and withdrew its licence based on the Banks and Specialised Deposit Taking Institutions Act of 2016 (Act 930), citing severe capital deficiencies. This move was part of a broader crackdown on financial institutions deemed unstable or non-compliant with new stringent capital requirements.\r\n\r\nUniCredit, through Hoda Holdings, contested the revocation in the Human Rights Division of the High Court, claiming unfair treatment and lack of a proper hearing. However, in March 2021, the High Court ruled in favour of the Bank of Ghana, stating that UniCredit was insolvent before the licence revocation and had been given adequate notice to rectify its capital shortcomings.\r\n\r\nThe decision was briefly overturned in July 2022 when the Court of Appeal sided with Hoda Holdings, criticising the Bank of Ghana for not following procedural steps laid out in section 16(3&4) of Act 930, which required a formal hearing before revocation.\r\n\r\nEscalating the matter to the Supreme Court, the Bank of Ghana sought to reinstate the High Court's ruling. The Supreme Court's agreement with the lower court's decision ends a tumultuous legal battle and is seen as a significant endorsement of the Bank of Ghana's authority to regulate the financial sector effectively.\r\n\r\nThis ruling comes at a crucial time, as Ghana's financial sector has been under intense scrutiny following a wave of financial institution failures, prompting a broader regulatory and restructuring programme aimed at bolstering the sector's health and stability.\r\n\r\nFinancial analysts view the Supreme Court\u2019s decision as a strong signal to the banking sector about the necessity of maintaining financial discipline and the regulator\u2019s resolve to enforce compliance rigorously."

"Supreme Court Upholds Bank of Ghana’s Decision to Revoke UniCredit’s License"

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