Bank of Ghana Revokes Preliminary Approval of 70 Prospective Microfinance Companies
The Bank of Ghana (BoG) has revoked its preliminary approval of 70 prospective microfinance companies and one money lending institution.
According to a notice signed by the Secretary, Mrs Caroline Otoo, the institutions which were yet to be licensed but which had been granted preliminary “approval in principle”, failed to meet the conditions for the Bank of Ghana to grant them a final license “despite several reminders”.
According to the BoG, it usually grants “approval in principle” for six months, to prospective banking, microfinance or lending businesses if it is satisfied with their capacity to raise the initial paid up capital and conduct the business with integrity and competence.
During such time, the prospective finance company is not to operate since it is not licensed yet, but is expected to meet certain requirements: raise the minimum paid up capital, submit a pre-operations financial statement and budget, meet conditions regarding its business premises such as space, experienced staff, security, fire safety, vault safety and insurance, as well as other requirements.