The Bank of Ghana has set a deadline for Rural banks, community banks and microfinance institutions to meet their respective minimum capital requirements.
In 2015, the Bank of Ghana made an upward revision to the minimum capital requirements of rural/community banks from GHC300,000 to GH¢1 million to be met by December 31, 2017 was announced.
Also, the Bank of Ghana gave the microfinance institutions up to June 2018 to meet the GH¢2 million capital requirements.
However on August 19th 2019, a notice issued by the central bank indicated that some rural banks, community banks and microfinance institutions have still not met the requirement many months after deadlines had elapsed.
The bank in its notice directed all institutions to meet their respective minimum capital by 28th February 2020.
“Pursuant to Section 28(1) of the Banks and Specialised Deposit-Taking Institutions Act 2016 (Act 930) and Section 11 of the Non-Bank Financial Institutions Act, 2008 (Act 774), Rural/Community Banks and Microfinance Institutions which fail to comply with their respective minimum capital by the above date shall be sanctioned.
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Shareholders, Directors, Operators of Rural/Community Banks and Microfinance Institutions are to take note of the above and be guided accordingly,” the BoG noted.
