Bank of Ghana registers 216 micro finance companies

The Bank of Ghana (BoG) has by the end of September this year, issued provisional licence to 216 microfinance companies to operate in the country.

Five of the companies; Excel United Microfinance, Jopat Microfinance, KB Star Microfinance, Beneficial Microfinance and Big Dreams Microfinance,  are in the Sunyani Municipality,

Four of them; God is Perfect Microfinance, Golden Trust Microfinance, ACIT Capital Microfinance and Samag Microfinance,    are in the Techiman Municipality one; Gifts Microfinance is at Dormaa Ahenkro.

Mr Peter Ntsiful, Brong-Ahafo Regional Manager of BoG, who announced these through the Ghana News Agency, in Sunyani on Wednesday, lamented that some other microfinance companies were operating illegally throughout the country.

He said the law enforcement agencies had been contacted to bring the culprits to book.

Mr Ntsiful advised the general public to deal with microfinance companies that had obtained licence from the Central Bank.

He warned the public of fraudulent microfinance companies that promise high interest rates and other incentives to entice clients.

Mr Ntsiful said: “It is not practicable for a financial institution to offer 120 per cent interest rate or more within a year on the savings of customers. How can it pay the staff and other costs incurred during their operations”.

The Banking Supervision Department of the BoG states that no person other than a body corporate, incorporated in Ghana shall be eligible to apply for a licence to carry out aspects of the microfinance business.

Additionally, no person shall carry out microfinance business unless he or she has obtained from the BoG a licence for that purpose.

On shareholding, the BoG stated that microfinance institutions such as Susu companies, deposit collection financial bodies and money lending companies should be restricted to only Ghanaians.

Shareholding in non-deposit taking microfinance institutions may be exclusively Ghanaian, exclusively foreign or jointly Ghanaian and foreign.

Source: GNA

  1. wise says

    if a bank can not put or give a an interest of 120% then, onward investment must be pardon for the action bank of Ghana took against them on their operations. the percentage for a customer was high as 35%.however, many banks still have their operation going on with certificate of operation from ministry of finance and bank of Ghana. i hope bank of Ghana will publish all register name s of bank to the notice of their customers.

  2. Wil says

    Well managing currency is a wide spectrum which incorporate high risk when it comes to only lending. Eg is uk loan companies which APRs falls inbetween 250 -2580% APR on loans so 35 % is pretty much acceptable

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