The Bank of Ghana (BoG) has sent a final notice to Rural and Community Banks (RCBs) and Microfinance institutions to comply with the GH¢2million minimum capital requirement, before 28th February 2020, or face sanctions.
According to a statement released by the central bank, “all institutions that fail to meet their respective minimum capital requirement by February 2020 shall be sanctioned”.
The Bank of Ghana, in July 2015, announced the revision of minimum capital for Rural and Community Banks and Microfinance Institutions to GH¢1million, to be complied with on or before 31st December 2017.
However, it further revised this figure to GH¢2million to be complied with by 30th June, 2018. But some have failed to comply with the new minimum paid-up capital.
Pursuant to Section 28(1) of the Banks and Sophisticated Deposit-Taking Institutions Act 2016, (Act 930) and Section 11 of the Non-Bank Financial Institutions Act, 2008 (Act774), the BoG has stated that RCBs and MFIs which fail to comply with the minimum capital by February 2020 will be sanctioned.
Source: B&FT Online