The Bank of Ghana (BoG) has directed new Microfinance Banks (MFBs) to hold a minimum capital of GH¢100 million to operate in the sector.
The Central Bank said the guidelines are aimed at strengthening financial stability and defined MFBs as licensed deposit‑taking institutions serving Micro, Small, and Medium Enterprises (MSMEs) as well as individual clients.
Under the new rules, existing Savings and Loans Companies, Finance Houses, and Micro‑Credit Companies must meet the capital requirements by December 31, 2026.
For institutions transitioning to the MFB category, the Bank set a transitional minimum capital requirement of GH¢50 million.
BoG outlined several compliance options, including stand-alone relicensing for institutions that meet the threshold independently, consolidation through mergers and acquisitions, asset and liability transfers to qualified entities, or voluntary exit from the market.
The Bank warned that institutions failing to adopt one of these options within the stipulated timeframe would face regulatory action.
The guidelines also introduce shareholding limits to strengthen corporate governance, capping individual ownership at 40 per cent, family or related‑party stakes at 50 per cent, and allowing corporate bodies to hold up to 100 per cent.
The Bank of Ghana said the measures are expected to improve monetary policy transmission and expand access to formal financial services across the country.
GNA