Bank of Ghana Begins Overhaul of Microfinance, Rural Banks
Even as public attention remains focused on the fate of Ghana’s universal banking industry, with only a month left to the dead line for recapitalization to a minimum of GHc400 million, the Bank of Ghana is now commencing with its plans to overhaul the country’s micro-finance and rural banking industries.
Last Thursday, Parliament ratified an agreement for the World Bank to furnish government with a US$ 30 million credit facility, approved by the Bank on September 30, to implement a Financial Sector Development Programme (FSDP) which will run through to 2022, the core of which is aimed at improving regulation of the MFI and rural banking sectors and making them more accessible to the banking public at the grass roots level. The new funding will enable the BoG, in collaboration with the Ministry of Finance to implement and enforce an array of corporate governance, risk management, enhanced capitalization and financial reporting measures which the central bank has drawn up, but which so far has not been implemented because of logistical challenges.
Image courtesy of Paul.