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Microfinance minimum capital to go up as BoG reviews regulations
Posted on: 26-Jun-2013         Source: myjoyonline.com
The Bank of Ghana is reviewing portions of the regulations covering the micro finance sector.

Key among this is the 100 thousand minimum capital requirement for micro-finance companies which is to be increased.

This has become necessary especially following the recent spate of bankruptcy reports in the sector.

About 5 micro-finance finance firms have in the 6 weeks experienced serious financial challenges which has seen most of them fold.

The Head of Banking Supervision at the Bank of Ghana, Franklyn Belnye tells Joy-Business the new review should be completed in a month’s time.

“The capital that we set is low and that’s why there’s this influx of the companies. But all of them may not even be coming in with noble intentions. So one of the things we’re going to do is to revise the capital requirement. But for existing companies we’ll give them a time frame to raise the additional capital. We’ve discussed it with management and we’ve got clearance and so we’ll soon issue new micro-finance guidelines on the capital, branching and liquidity requirements among others perhaps within the next month” he explained.