The Bank of Ghana (BoG) has repealed the licenses of some 70 microfinance and money lending companies across the country.
According to the BoG these institutions failed to meet the required conditions for issuance of a final license.
The Bank of Ghana rules authorises that persons wanting to conduct microfinance business are often given a provisional license, to begin the processing of starting full operations.
Below is the full statement issued by the Central Bank:REVOCATION OF ‘APPROVAL IN PRINCIPLE’
The Bank of Ghana (BoG) is the central bank of Ghana. It is located in Accra and was formed in 1957. The bank is active in developing financial inclusion policy and is a member of the Alliance for Financial Inclusion .
The Central Bank of Ghana traces its roots to the Bank of the Gold Coast (BGC) or Ghana Commercial Bank, where it was nurtured. As soon as local politicians and economists saw political independence in sight in the mid-1950s the agitation for a central bank was revived. It was argued that a central bank was one institution which would give true meaning to political independence.
It may be recalled that way back in 1947 some leading politicians had called for the establishment of a national bank with central bank functions to act as banker to government and to cater for the indigenous sector of the economy.