The Bank of Ghana (BoG) has directed rural banks and microfinance companies to meet their minimum operating capital set for them by February 28, 2020.
Failure to meet the requirement will attract sanctions, the central bank has said.
BoG in 2015 pegged the minimum operating capital for rural banks at GHâ‚µ1,000,000 which was to be complied with by December 31, 2017.
Microfinance houses were also handed a June 30 deadline to raise their minimum capital of GHâ‚µ2,000,000.
However, BoG in a statement issued Monday, July 19, said: “Further to Bank of Ghana Notice No. BG/GOV/SEC/2015/08 dated 3rd July, 2015, which announced the revision of minimum capital for Rural/Community Banks and Microfinance Institutions to One Million Ghana Cedis (GHâ‚µ1,000,000) to be complied with by 31st December, 2017, and Two Million Ghana Cedis (GHâ‚µ2,000,000) to be complied with by 30th June, 2018, respectively, the Bank directs all institutions to meet their respective minimum capital by 28th February, 2020.”
“Pursuant to Section 28(1) of the Banks and Specialised Deposit-Taking Institutions Act 2016 (Act 930) and Section 11 of the Non-Bank Financial Institutions Act, 2008 (Act 774), Rural/Community Banks and Microfinance Institutions which fail to comply with their respective minimum capital by the above date shall be sanctioned,” said the statement signed by BoG’s Secretary, Mrs Frances Van-Hein.
The statement added that “Shareholders, Directors, Operators of Rural/Community Banks and Microfinance Institutions are to take note of the above and be guided accordingly.”