Bank of Ghana to sanction illegal FNGOs

Business News of Friday, 18 December 2015


Wampah Bog BossDr Henry Wampah, Governor of BoG

The Bank of Ghana will soon crackdown on financial non-governmental organization operating without license in the country.

According to reports, out of the over 40 organizations in the country, only eleven have registered with the regulator.

This was revealed by Patience Yeboah-Nkansah, the Deputy Chief Manager, Micro-finance Unit of the Bank of Ghana at the 4thannual general meeting of the Association of Financial Non-Governmental Organizations (ASSFIN.

The AGM on the theme: “Regulation of the Micro-finance Industry: Challenges and Prospects for FNGO’was to find feasible ways to boost the sector.

It also provided a platform for interaction among FNGOs and the regulator with focus on information dissemination as well as addressing consumer concerns.

Mrs. Yeboah-Nkansah expressed worry about how some Microfinance companies use the BoG provisional licenses for advertisement.

She revealed that the Central Bank has granted licences to 468 microfinance companies, 64 Money Lenders and 11 financial NGOs.

The BoG Deputy Chief Manager added that her outfit is closely monitoring the activities of the microfinance sector.

Mrs. Yeboah-Nkansah also urged FNGOs to expedite action in obtaining their license before they begin the crackdown next year.

For his part, Executive Secretary for ASSFIN, Victor Darko called on the Bank of Ghana to revise the capital for startups.

He noted that due to the high rate being charged, most of the FNGOs are unable to meet the criteria to obtain a license.

The ASSFIN boss stated that though the license gives them credibility which makes it easier to access donor funds, the process is cumbersome.

Victor Darko however assured the regulator to make a conscious effort to get all their members to acquire license.