The Bank of Ghana has given rural and community banks and microfinance institutions up to February 2020 to meet their respective minimum capital requirements.
The Bank of Ghana in 2015 announced an upward revision of the minimum capital requirements of rural/community banks to GH¢1 million ($200,000) to be met by December 31, 2017.
The central bank gave the microfinance institutions up to June 2018 to meet the GH¢2 million ($400,000) capital requirements.
A notice has been issued to these institutions by the Bank of Ghana, suggesting that some of the institutions have still not met the deadlines after it has elapsed.
The notice urged, “Shareholders, Directors, Operators of Rural/Community Banks and Microfinance Institutions are to take note of the above and be guided accordingly.”
The banking sector reforms have resulted in the collapse of some prominent financial institutions such as GN Bank, which was degraded to a microfinance, and later had its licence revoked, Women’s World Bank, Opportunity Savings and Loans scheme.
DAP/GIK/APA