Bank of Ghana Introduces ¢100 Million Minimum Capital Requirement for Microfinance Banks

The Bank of Ghana has announced a ¢100 million (approximately USD $9 million) minimum capital requirement for institutions seeking to operate as Microfinance Banks (MFBs) in the country.

The directive, issued on Tuesday, forms part of a broader reform agenda aimed at improving financial stability, strengthening corporate governance, and protecting depositors’ funds within the microfinance sector.

According to the central bank, the reforms are designed to address persistent operational and governance challenges while enhancing the long-term sustainability of institutions operating in the sector.

Under the new framework, Microfinance Banks will operate as licensed deposit-taking institutions in line with Act 930, with a primary focus on providing financial services to micro, small and medium enterprises (MSMEs), as well as formal and informal groups and individual clients.

The Bank of Ghana also announced a transition arrangement for existing Savings and Loans Companies, Finance Houses, Deposit-taking Microfinance Companies and Micro-Credit Companies, allowing them time to comply with the revised capital requirements and convert to Microfinance Bank status.

Newly licensed Microfinance Banks will be required to meet the full ¢100 million minimum capital threshold, while existing institutions transitioning into the MFB category must raise a minimum capital of ¢50 million by December 31, 2026.