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The Bank of Ghana (BoG) has revoked the licences of 347 Microfinance Companies, with effect from today, Friday, May 31st.

The central bank's decision, announced in a press release Friday, involves the revocation of licences of 192 insolvent microfinance companies and another 155 insolvent microfinance companies that have ceased operations. 

These actions were taken pursuant to section 123 (1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), which requires the Bank of Ghana to revoke the licence of a bank or Specialised Deposit-taking Institution (SDI) where the Bank of Ghana determines that the institution is insolvent or is likely to become insolvent within the next 60 days.

Consequently, the Bank of Ghana has appointed Mr. Eric Nipah as Receiver for the specified institutions in line with section 123 (2) of Act 930.

According to the Bank of Ghana's press release; “the revocation of the licences of these institutions is to get rid of insolvent and dormant institutions that have no reasonable prospects of rehabilitation and have denied depositors access to their deposits, thereby constituting a threat to the stability of the financial system. By the revocation of these licences, the Bank of Ghana seeks to protect the stability of the financial system and to protect affected depositors."

Attached is the full list