MICROCAPITAL BRIEF: Bank of Ghana Licenses 394 Microfinance Institutions (MFIs), Donates Equipment to Trade Associations

The Bank of Ghana, the country’s central banking authority, has issued licenses to 394 microfinance institutions (MFIs), including 344 classified as microfinance companies, 45 as money-lending companies and five as financial non-governmental organizations. Additionally, the Bank of Ghana granted three trucks and an undisclosed number of laptops and printers to three microfinance bodies including the 560-member the Ghana Association of Microfinance Companies (GAMC) to bolster their support to MFIs.

As of year-end 2012, the Bank of Ghana reported total assets of GHS 21.7 billion (USD 9.2 billion).

By Meraj Husain, Research Associate

About Bank of Ghana (BoG)

Established in 1957, the Bank of Ghana (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 non-bank financial institutions. The mandate of BoG is to “maintain stability in the general level of prices, to ensure efficient operations of the banking and credit systems, [and] to support general economic growth.” BoG uses monetary and fiscal policies to achieve its mandate, acts as a banker and financial adviser to the government and performs annual on-site audits of the microfinance institutions within its purview through its Other Financial Institutions Supervisory Department. As of year-end 2012, BoG has total assets of GHS 21.7 billion (USD 9.2 billion).

About Ghana Association of Microfinance Companies (GAMC)

Ghana Association of Microfinance Companies (GAMC) is an association of 560 member companies providing microfinance services in Ghana. Member companies offer both lending and deposit products to their clients. It is limited by guarantee and was registered in Ghana in May 2011. As of December 31, 2012, GAMC member MFIs held assets of approximately GHS 279,000 (USD 131,000) and an aggregate loan portfolio of GHS 850 million (USD 400 million).

Sources and Additional Resources

[1] Government of Ghana: “Bank of Ghana Supports Microfinance Institutions,” http://www.ghana.gov.gh/index.php/2012-02-08-08-32-47/general-news/5022-bank-of-ghana-supports-microfinance-institutions

MicroCapital, January 30, 2014, “Bank of Ghana to Limit Number of Operating Licenses for Microfinance Institutions (MFIs),” https://www.microcapital.org/microcapital-brief-bank-of-ghana-to-limit-number-of-operating-licenses-for-microfinance-institutions-mfis/

MicroCapital, September 25, 2013, “Bank of Ghana Increases Liquidity Requirement for Microfinance Financial Institutions,” https://www.microcapital.org/microcapital-brief-bank-of-ghana-increases-liquidity-requirement-for-microfinance-financial-institutions/

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

MicroCapital Profile: Ghana Association of Microfinance Companies (GAMC)
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Ghana+Association+of+Microfinance+Companies+%28GAMC%29

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