In a keynote address to judges at a judicial sensitisation programme on insolvency and beneficial ownership, the Bank of Ghana set out how Ghana’s corporate insolvency and bank resolution frameworks are intended to operate, and confirmed that the Banks and Specialised Deposit-Taking Institutions Act, 2016 is under review with proposed amendments to clarify the central bank’s bank resolution mandate and strengthen the legal framework for financial stability. The address highlighted the Corporate Insolvency and Restructuring Act, 2020 as the modern framework for administration and restructuring of distressed companies, and linked it to the Bank of Ghana’s supervisory approach under the banking law, including prudential requirements, enforcement tools and prompt corrective action to prevent regulated financial institutions and specialised deposit-taking institutions from becoming insolvent. It set out resolution entry points in Act 930, including appointment of an Official Administrator where, among other grounds, unsafe and unsound practices jeopardise depositors or dissipate assets, or where capital adequacy or unimpaired paid-up capital falls below 50% of the minimum required, and noted that licence revocation and appointment of a receiver is triggered where an institution is insolvent or likely to become insolvent within 60 days. On legal process, it referenced Act 930’s arbitration route for grievances while noting the Supreme Court’s 2023 GN Bank decision recognising Human Rights Court jurisdiction where administrative justice breaches are alleged, and it cited the Financial Stability Board’s Key Attributes principle that legislation should avoid judicial actions that reverse good-faith resolution measures, with redress provided through compensation instead. The Bank of Ghana indicated the Act 930 review is ongoing and that amendments are being proposed to support an orderly and credible resolution regime, without setting out a timeline for completion.

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