BoG Descends On Illegal Microfinance Companies

The Bank of Ghana (BoG) is to outline new reforms to sanitise Ghana’s microfinance industry.

The reforms are expected to among others provide a comprehensive plan by the central bank to improve activities in the microfinance industry.

It also comes on the back of reports of customers losing their investments to some microfinance institutions when their operations have been suspended over inefficiencies.

In a publication, the BoG listed the microfinance companies that are in good standing for the information of the public.

According to the latest publication, there is a total of three hundred and nineteen (319) micro finance institutions.

A further breakdown also shows that there are forty (40) money lending institutions, six (6) Financial NGOs as well as two hundred and seventy-three (273) microfinance institutions.

Already, the Governor of the Bank of Ghana, Dr. Ernest Addison has served notice that the central bank will not issue any license this year.

According to Dr. Addison, this is to allow the central bank strengthen control and supervision of the activities of the financial institutions.

In response, the microfinance association has lauded the move by the regulator saying it will help identify non-complying institutions and sanction them accordingly.

For last year alone, Citi Business News reported at least seven separate cases of microfinance institutions whose inefficiencies led to investors losing their investments.