MICROCAPITAL BRIEF: Bank of Ghana Introduces Logo for Licensed Microfinance Institutions, New Monitoring Requirements

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

GhanaWeb:
BoG introduces business rules and microfinance logo to sanitize the industry

Bank of Ghana:
2015 Annual Report

Central Bank of Ghana

MicroCapital:
Bank of Ghana (BOG) to Raise Minimum Capital Requirement for Microfinance Institutions (MFIs) to $240k

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