Dr. Johnson Pandit Asiama
The Bank of Ghana (BoG) has increased the minimum capital requirement for new entrants into the microfinance sector to GH¢100 million, as part of measures aimed at protecting depositors and strengthening financial system stability.
According to the central bank, the new framework, which operators are expected to comply with by December 2026, also requires existing institutions seeking to transition into microfinance operations to raise a minimum capital of GH¢50 million.
In a notice issued on January 27, 2026, and signed by the Secretary to the Bank of Ghana, Aimee Vyda Quarshie, the BoG outlined several transition pathways for affected institutions.
These include merging with or being acquired by other operators, transferring assets and liabilities to stronger institutions, or opting for a voluntary and orderly exit without disruptions to the financial system.
The central bank directed operators to formally notify it of their chosen option by June 30, 2026, with progress reports due by September 30, 2026. Institutions that fail to act within the stipulated timelines risk sanctions, including restrictions on their operations.
As part of the broader reforms, the BoG also announced that all Rural Banks will be converted into Community Banks by March 31, 2026. These Community Banks will be required to meet a new minimum capital threshold of GH¢5 million, while newly established urban Community Banks must raise GH¢10 million by the end of 2026.
The BoG further disclosed that licensing of qualified Credit Unions (CUs) will commence in the second quarter of 2026. Licensed and supervised CUs will be permitted, in addition to offering member-based savings and credit services, to undertake other deposit-taking activities, subject to the central bank’s approval.
The central bank said it will issue an appropriate prudential framework to guide the supervision of CUs.
On commercial banking operations, the guidelines state that Commercial Banks (CBs) shall conduct deposit-taking business in accordance with Act 930, adding that the Bank of Ghana may periodically review and revise the scope of permissible activities to reflect evolving market dynamics, regulatory and monetary policy priorities, as well as financial inclusion objectives.
By Ebenezer K. Amponsah