The Bank of Ghana 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 were intended to strengthen financial stability and defined MFBs as licensed deposit‑taking institutions serving Micro, Small and Medium Enterprises (MSMEs) and individual clients.
According to the guidelines, existing Savings and Loans Companies, Finance Houses and Micro‑Credit Companies must meet the new capital standards by December 31, 2026. For institutions transitioning to the MFB category, the Bank set a transitional minimum capital requirement of GH¢50 million.
The Bank said compliance options included stand-alone relicensing for institutions meeting the threshold independently, consolidation through mergers and acquisitions, asset and liability transfers to qualified entities, or voluntary exit from the market. It warned that institutions failing to adopt one of the transitional options within the stipulated timeframe would face regulatory action.
The guidelines also introduced shareholding limits to strengthen corporate governance, restricting individual ownership to 40 per cent, family or related‑party stakes to 50 per cent, while corporate bodies may hold up to 100 per cent. The Bank of Ghana said the measures were expected to improve monetary policy transmission and broaden access to formal financial services nationwide.
Source: GNA
