The Bank of Ghana (BoG), the financial regulator of the country, is introducing a logo that microfinance institutions (MFIs) can display to help consumers “distinguish between credible, licensed microfinance institutions and unlicensed ones.” BoG also is requiring MFIs to monitor and report on their operations periodically. Fines and other sanctions will apply to those failing to report properly as well to those failing to meet other requirements such as maintaining the required levels of capital.
Established in 1957, BoG has regulatory and supervisory authority over banking and financial institutions in Ghana, including rural and community banks, savings and loan companies, credit unions and cooperatives. BoG is to conduct annual on-site audits of these institutions; however, nonprofit organizations in Ghana are not regulated by any government agency. As of year-end 2015, BOG has total assets of GHS 74.4 billion (USD 16.4 billion), return on assets (ROA) of 4.6 percent and return on equity (ROE) of 22.2 percent.
By Phoebe Rorke, Research Associate
Sources and Additional Resources
Bank of Ghana:
2015 Annual Report
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at http://www.microcapital.org/products-page/.