Former Finance Minister and Karaga MP, Mohammed Amin Adam, has warned that the Court of Appeal ruling restoring the licence of GN Savings and Loans could pose serious fiscal and financial stability risks if not carefully managed.

In a Facebook post shared on Friday, May 23, 2026, Dr Amin Adam cautioned that the decision could open the door for similar claims from other collapsed financial institutions, potentially exposing the state to compensation demands, depositor settlement disputes, asset-return claims, and recapitalisation pressures.

“Ghana is exiting an IMF ECF arrangement with very limited fiscal space. This is not the time to create open-ended contingent liabilities,” he stated.

The former Finance Minister also expressed concern about the potential for moral hazard within the banking sector, warning that politically influenced reversals of regulatory actions could weaken discipline and deterrence.

According to him, the banking sector clean-up exercise was intended to send a strong signal that weak governance, insolvency, and depositor risks would attract consequences.

“If reversals are seen as politically driven, it risks telling future bank owners that regulatory breaches can be revisited once political conditions change,” he warned.

Court of Appeal orders restoration of GN Savings and Loans licence

Dr Amin Adam further stressed that restoring a licence should not automatically result in a financial institution resuming operations without fresh regulatory scrutiny.

He argued that regulators must first conduct comprehensive reviews covering capital adequacy, asset quality, liquidity, governance standards, depositor protection, and fit-and-proper assessments before any restart is approved.

“Anything less would expose depositors and the broader system to avoidable risks,” he added.

He maintained that Ghana’s credibility after its IMF programme would depend not only on fiscal performance but also on the strength and durability of institutional reforms within the financial sector.



VPO/EB