The Bank of Ghana is seeking more powers to effectively deal with the current crisis in the microfinance sector.

The Central Bank has been criticized for not being proactive enough in clamping down on non-compliant operators.

It has already indicated plans to review the licencing process for the operators as part of its efforts to deal with the situation.

Outgoing Head of Other Financial Institutions of the BoG, Raymond Amanfo says depositors funds would be better protected if the Central Bank is also empowered to take certain actions in the approval process.

“Maybe I am company XY and I want to set up a microfinance company, now we are removing the veil to know who company XY is.

“Who are the Directors? Who are the owners? What are the affiliate companies? We have seen that some of them do not have the affiliate companies," he queried.

 They set up the affiliate companies after securing the license to operate the microfinance companies, and this should stop” Mr. Amanfo stressed.

The BoG he intimated, wants to stop the abuses in the sector by asking applicants to “provide an undertaking that if you are an affiliate and you don’t disclose then you are as good as an illegal company.”

These he said would help ensure that operators do not take advantage of innocent depositors.

Mr. Amanfo is hopeful that approval for the new proposals would be given within the first quarter of this year for onward enforcement.