Bank of Ghana gives rural banks, microfinance institutions February 2020 as deadline to recapitalise

Rural banks and microfinance institutions have been directed to recapitalised by February 2020.
This comes after they refused to meet the previous deadline the bank of Ghana gave.
The requirements are $183,590.00 (GH¢1 million) and $367,180.00 (GH¢2 million) respectively.

The recapitalisation requirements for these companies are $183,590.00 (GH¢1 million) and $367,180.00 (GH¢2 million) respectively.

The directive was contained in a notice issued on Monday, August 19, 2019.

The central bank in 2015 announced an upward revision to the minimum capital requirements of rural/community banks to $183,590.00 (GH¢1 million) to be met by December 31, 2017.

Also, it gave the microfinance institutions up to June 2018 to meet the $367,180.00 (GH¢2 million) capital requirements.

But the notice suggests that some of these institutions have still not met the deadlines many months after they elapsed.

The BoG has hence served the notice to all institutions asking them 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,” the notice said.

Adding that, “Shareholders, Directors, Operators of Rural/Community Banks and Microfinance Institutions are to take note of the above and be guided accordingly.”