Bank of Ghana to use GHC700 million to clean up microfinance industry

Bank of Ghana to use GHC700 million to clean up microfinance industry

The Bank of Ghana (BoG) is set to clean up the microfinance industry with an amount of GHC 700 million.

Graphic.com.gh reports that the move, with the support of the ministry of finance, is to help prevent the loss of deposits of thousands of funds.

About 705,396 depositors of distressed or collapsed microfinance companies and rural and community banks (RCBs) risk losing a total of GH¢740.5 million if their financial resources are not swiftly shored up.

A man seated in a chair

Dr. Ernest Addison, BoG governor Source: Graphic.com.gh
Source: UGC

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The amount represents deposits currently locked up in the 272 rural and community banks and microfinance companies which were either in distress or had folded up as of the year 2018.

At a news conference in Accra on April 1, 2019 , the governor of the BoG, Dr Ernest Addison, expressed certainty that the clean-up of the sector would happen in the second quarter of the year 2019.

Speaking at the news conference, he said: “We have done an initial assessment and the estimates we have done are not expected to be significantly higher than the GH¢700 million.”

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Source: Yen

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