The Bank of Ghana has given microfinance institutions up to December 31, 2026, to meet a new set of regulatory requirements, following a major overhaul of rules governing the sector.

The reforms introduce higher capital thresholds, redefine operational categories, and establish clearer supervisory structures, as the central bank seeks to strengthen depositor protection and reduce vulnerabilities within the financial system.

Under the new framework, existing institutions that intend to operate as Microfinance Banks must increase their minimum capital to GH¢50 million, while prospective new entrants will be required to raise GH¢100 million. The Bank of Ghana says the move is aimed at ensuring stronger balance sheets and improved governance among institutions that mobilise public funds.

To manage the transition smoothly, operators have been offered several options. These include recapitalising independently, pursuing mergers or acquisitions, transferring portfolios to more stable institutions, or exiting the market through a regulated winding-down process.

Institutions are expected to inform the central bank of their chosen route by June 30, 2026, and submit evidence of progress by September 30, 2026. Failure to engage the process could result in regulatory penalties, including limits on business activities.

Rural Banks Reclassified

The reforms also provide for the conversion of all Rural Banks into Community Banks by March 31, 2026. Existing Community Banks will be required to maintain a minimum capital of GH¢5 million, while newly licensed urban Community Banks must meet a higher threshold of GH¢10 million by the close of 2026.

According to the Bank of Ghana, the restructuring is intended to enhance local banking services while promoting stronger ownership structures and accountability.

New Oversight for Credit Unions

From the second quarter of 2026, credit unions with asset holdings of GH¢60 million or more will fall directly under the supervision of the Bank of Ghana. Smaller cooperatives and susu operators will be grouped as Last-Mile Providers and monitored through delegated regulatory arrangements.

Implications for Customers

The Central Bank pointed out that the measures are focused on reform rather than closures.

Customers are expected to be shielded during any consolidation process, with institutions required to give a minimum of 30 days’ notice before implementing significant changes.

The Bank of Ghana believes the revised framework will result in a more robust microfinance industry, better equipped to serve households, microenterprises, and small businesses, while limiting the risks that have undermined confidence in the sector in recent years.