Former Minister for Finance, Mohammed Amin Adam, has raised concerns over attempts by government officials to credit President John Dramani Mahama for the recent Court of Appeal ruling ordering the restoration of the licence of GN Savings and Loans.
In a strongly worded statement, Amin Adam described the development as “disturbing,” warning that the ruling carries far-reaching implications for Ghana’s financial-sector policy, regulatory credibility, and post-IMF economic outlook.
According to him, the court’s decision is not merely a legal matter but a significant policy issue that could shape investor confidence and the future of banking regulation in Ghana.
“This ruling comes against an important political background,” he stated, referencing President Mahama’s campaign promise during the 2024 elections to restore licences of financial institutions he believed were “wrongfully collapsed.”
Amin Adam argued that this political backdrop raises concerns about the relationship between politics, law, and regulatory independence.
He recalled that Ghana’s banking sector clean-up between 2017 and 2019 was undertaken because many financial institutions were struggling with weak capital bases, poor governance structures, related-party transactions, and liquidity challenges.
Citing reports by the International Monetary Fund and PwC, he noted that the revocation of licences for several banks and financial institutions formed part of broader efforts to restore stability and public confidence in the sector.
While acknowledging that court orders must be respected, the former finance minister stressed that the key issue is whether restoring a revoked licence without a fresh and transparent regulatory assessment could undermine Ghana’s bank resolution framework.
He identified several risks associated with the ruling, including regulatory credibility risks, moral hazard concerns, fiscal exposure, and financial stability threats.
According to him, reversing prudential regulatory decisions years later could weaken confidence in the authority of the Bank of Ghana and encourage financial institutions to treat regulatory sanctions as negotiable political outcomes.
He further warned that if other collapsed institutions pursue similar legal action, the state could face compensation claims, depositor settlement disputes, and recapitalisation pressures at a time when Ghana is emerging from an IMF-supported economic recovery programme with limited fiscal space.
Amin Adam also stressed that any operational restoration of GN Savings and Loans should be preceded by fresh assessments covering capital adequacy, liquidity, governance, asset quality, and depositor protection measures.
He cautioned that Ghana’s international credibility could also suffer if financial-sector reforms are perceived as politically reversible.
“Investors and development partners will ask whether Ghana’s reforms are durable or reversible,” he stated, adding that financial stability should not be sacrificed for political considerations.
The former finance minister urged the Bank of Ghana to immediately clarify the regulatory implications of the ruling and indicate whether it intends to appeal the decision.
He also called on the central bank to publish the broad conclusions of any fresh prudential assessment before the institution resumes operations.
Additionally, he urged the Ministry of Finance to disclose any potential fiscal liabilities arising from the ruling, including compensation claims, depositor obligations, or recapitalisation costs.
“Ghana cannot afford to politicize banking regulation just as it exits an IMF program,” Anim Adam concluded. “Financial stability is not a campaign promise. It is a national asset.”
