In Response to Crisis, Bank of Ghana to Review Licensing Regime for Microfinance Companies

Tuesday, January 12, 2016

The Bank of Ghana (BoG) has decided to review the process of granting licences to microfinance institutions (MFIs) to forestall illegal operations by unqualified MFIs in the country.

Under the review process, the central bank would make personal contacts with purported directors of MFIs to ensure that their names are not used fictitiously for the registration.

The Deputy Governor of the BoG, Mr Millison Narh, and the Head of the Banking Supervision of the BoG, Mr Raymond Amanfu, made this known at a press briefing in Accra yesterday.

The briefing was to give further information on the revocation of the approval in principle granted to 70 MFIs by the central bank last Tuesday.

As part of the review process, the bank has decided to improve collaboration between the BoG and the law enforcement agencies to intensify surveillance of the operations of MFIs.

Besides, the regional staff of the BoG will be equipped to intensify surveillance of the operations of MFIs to ensure that the MFIs do not begin operations after securing the approval in principle, which only prepares them for the financial approval.

Source: Ghana News (link opens in a new window)

financial inclusion, microfinance