Dr. Johnson Asiama, BoG Governor
The Governor of the Bank of Ghana, Dr. Johnson Asiama, has called for a stronger and more coordinated approach to handling corporate insolvency and beneficial ownership cases to safeguard Ghana’s financial stability.
Delivering the keynote address at a judicial sensitisation programme on insolvency and beneficial ownership laws organised by the Office of the Registrar of Companies at Peduase Lodge, Dr. Asiama underscored the need for timely and balanced judicial interventions in insolvency proceedings.
He said the Corporate Insolvency and Restructuring Act (Act 1015) and the Banks and Specialised Deposit-Taking Institutions Act (Act 930) provide critical tools for managing financially distressed companies and protecting depositors’ interests.
“A resilient insolvency regime strengthens Ghana’s corporate governance and protects the broader economy,” he noted, adding that delays in court processes could diminish asset value and heighten financial instability.
Dr. Asiama explained that insolvency in banks often arises from weak internal controls, insider dealings, excessive risk-taking, poor credit standards, and misuse of depositors’ funds. He emphasised that the Bank of Ghana continues to enforce regulatory and supervisory measures to prevent such failures.
Citing recent judicial rulings, including the GN Bank case, he said courts play a vital role in ensuring due process while avoiding interventions that could reverse regulatory actions or disrupt financial stability.
“Where regulators act within their legal powers and in good faith, redress should be sought through compensation rather than reversal of measures,” he said, referencing Financial Stability Board (FSB) Principle 5.5.
Dr. Asiama also announced ongoing legal reforms to strengthen the bank resolution framework under Act 930, aimed at clarifying the Bank’s mandate and ensuring an orderly resolution regime.
He commended the Office of the Registrar of Companies, led by Mrs. Maame Samma Peprah, for organising the sensitisation programme, and expressed optimism that such engagements would deepen collaboration between the judiciary and financial regulators.
“With the support of all stakeholders, Ghana can build a credible insolvency regime that supports growth and financial resilience,” Dr. Asiama concluded.
