MICROCAPITAL BRIEF: Bank of Ghana (BoG) Expected to Shut Down Unlicensed Microfinance Institutions MEDLORM Microfinance Limited, African Guarantee Trust, Abbey Cash Microfinance Limited, Swift Financial Services

The Bank of Ghana (BoG), Ghana’s central bank authority, reportedly is expected to halt the operations of four unlicensed microfinance institutions (MFIs): MEDLORM Microfinance Limited, African Guarantee Trust, Abbey Cash Microfinance Limited and Swift Financial Services. BoG urged the public to refrain from dealing with the four MFIs. No timetable for closing down the unlicensed banks was provided.

Financial information on the four unlicensed MFIs is not available. For the year 2010, 20 microfinance institutions (MFIs) in Ghana report to the US-based nonprofit Microfinance Information Exchange (MIX) an aggregate gross loan portfolio of USD 91.9 million outstanding to approximately 241,000 borrowers and aggregate deposits of USD 93.6 million.

By Brendan Millan, Research Associate

About Bank of Ghana(BOG): Formed in 1957, BOG is the central bank of Ghana. BOG has regulatory and supervisory authority over financial institutions in Ghana, including rural and community banks, savings and loan companies, credit unions and cooperatives.

Sources and Resources:

[1] Joy Online: “BoG Likely to Close Down The 4 Unlicensed Microfinance Institutions” by Emmanuel Agyei and Bernard Nasara Saibu. http://business.myjoyonline.com/pages/news/201205/86207.php

MicroCapital.org story, April 25, 2012, “MICROCAPITAL BRIEF: National Insurance Commission (NIC) of Ghana Anticipates New Microinsurance Law”, https://www.microcapital.org/microcapital-brief-national-insurance-commission-nic-of-ghana-anticipates-new-microinsurance-law/

MicroCapital.org story, March 21, 2012, “MICROCAPITAL BRIEF: Bank of Ghana (BOG) Pursues Tighter Regulation, Enforcement of Microfinance Sector”, https://www.microcapital.org/microcapital-brief-bank-of-ghana-bog-pursues-tighter-regulation-enforcement-of-microfinance-sector/

MicroCapital.org story, March 12, 2012, “MICROCAPITAL BRIEF: Bank of Ghana (BOG) Receives 300 Microfinance License Applications,” https://www.microcapital.org/microcapital-brief-bank-of-ghana-bog-receives-300-microfinance-license-applications

MicroCapital.org story, September 15, 2011, “MICROCAPITAL BRIEF: Bank of Ghana Issues New Licensing Regime to Regulate Microfinance Industry”, https://www.microcapital.org/microcapital-brief-bank-of-ghana-issues-new-licensing-regime-to-regulate-microfinance-industry/

MicroCapital Universe Profile: Bank of Ghana (BOG), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Bank+of+Ghana+%28BOG%29

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

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