{"id":629435,"date":"2019-06-01T04:54:47","date_gmt":"2019-06-01T04:54:47","guid":{"rendered":"<br><div id=\"post-519174\"><header>\n<div class=\"entry-post-meta\">\n\n<p>Date: <time content=\"2019-05-31T18:58:57+00:00\" class=\"entry-date updated\" datetime=\"2019-05-31T18:58:57+00:00\">May 31, 2019 6:58pm<\/time><\/p>\n<\/div> \n<\/header><div class=\"entry-content "},"modified":"2019-06-01T04:54:47","modified_gmt":"2019-06-01T04:54:47","slug":"bog-outlines-plan-to-protect-microfinance-sector-after-licences-revocation","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2019\/06\/01\/bog-outlines-plan-to-protect-microfinance-sector-after-licences-revocation\/","title":{"rendered":"BoG outlines plan to protect microfinance sector after licences revocation"},"content":{"rendered":"<p><\/p>\n<div id=\"post-519174\">\n<header>\n<div class=\"entry-post-meta\">\n<p>Date: <time content=\"2019-05-31T18:58:57+00:00\" class=\"entry-date updated\" datetime=\"2019-05-31T18:58:57+00:00\">May 31, 2019 6:58pm<\/time><\/p>\n<\/div>\n<\/header>\n<div class=\"entry-content clearfix\">\n<figure class=\"fff post-thumbnail\" itemprop=\"associatedMedia\" itemscope=\"\" itemtype=\"http:\/\/schema.org\/ImageObject\"><img decoding=\"async\" class=\"post_layout_5_img\" src=\"https:\/\/cdn.ghanamma.com\/2019\/04\/Ernest-Addison.jpg\" alt=\"BoG outlines plan to protect microfinance sector after licences revocation\"\/><span class=\"featured-image-caption\"><br \/>\nDr. Ernest Addison, BoG Governor. <\/span><br \/>\n<\/figure>\n<p>The Bank of Ghana (BoG) has outlined plans to ensure sanity in the microfinance sector after it <span style=\"color: #000000;\">revoked the licences of some<\/span> <strong>347 insolvent microfinance companies<\/strong>.<\/p>\n<p>137 microfinance companies are currently in good standing.<\/p>\n<p>The Central Bank said the revocation of the licenses was to get rid of insolvent and dormant institutions that \u201chave no reasonable prospects of rehabilitation\u201d and have denied depositors access to their deposits thus constituting a threat to the stability of the financial system.<\/p>\n<p>In the statement announcing the development,\u00a0 the BoG assured that it has\u00a0\u201cput in place measures to ensure that the existing institutions remain safe and sound by complying with relevant prudential norms.\u201d<\/p>\n<p>Among other things, the BoG is:<\/p>\n<ul>\n<li>Undertaking a comprehensive review of licensing and supervisory policies and directives;<\/li>\n<li>Reviewing the minimum capital requirements for microfinance companies and encouraging possible consolidation through voluntary mergers and acquisitions;<\/li>\n<li>Introducing proportional corporate governance, fit and proper, and risk management directives;<\/li>\n<li>Embarking on strict supervision of licensed institutions and enforcement of relevant regulatory requirements;<\/li>\n<li>Increase the resources available for effective supervision of licensed microfinance companies.<\/li>\n<\/ul>\n<p>The microcredit sector was also affected by the BoG\u2019s action as 39 microcredit institutions had their licenses revoked by the central bank.<\/p>\n<p>The microcredit sector is now left with\u00a031 institutions.<\/p>\n<p>The revocation of the licences of the 39 microcredit institutions was mainly due to \u201csevere undercapitalization, poor lending and risk management practices, and poor corporate governance practices.\u201d<\/p>\n<p>For this sector, the BoG said it is strengthening its\u00a0regulatory and supervisory framework, and promoting confidence in the microcredit sector through:<\/p>\n<ul>\n<li>A comprehensive review of licensing and supervisory policies and directives;<\/li>\n<li>A review of the minimum capital requirements for microcredit and encouraging possible consolidation through voluntary mergers and acquisitions;<\/li>\n<li>Introduction of proportional corporate governance, fit and proper, and risk management directives;<\/li>\n<li>Strict supervision of licensed microcredit companies and enforcement of relevant regulatory requirements; and<\/li>\n<li>Increase the resources available for effective supervision of licensed microcredit companies.<\/li>\n<\/ul>\n<p><span class=\"ctx-article-root\"\/>  <\/p>\n<\/div>\n<\/div>\n<p>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a style=\"display:none\" rel=\"follow\" href=\"http:\/\/megatheme.ir\/\" title=\"\u0642\u0627\u0644\u0628 \u0648\u0631\u062f\u067e\u0631\u0633\">\u0642\u0627\u0644\u0628 \u0648\u0631\u062f\u067e\u0631\u0633<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Date: May 31, 2019 6:58pm Dr. Ernest Addison, BoG Governor. The Bank of Ghana (BoG) has outlined plans to ensure sanity in the microfinance sector after it revoked the licences of some 347 insolvent microfinance companies. 137 microfinance companies are currently in good standing. The Central Bank said the revocation of the licenses was to [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":611375,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-629435","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>BoG outlines plan to protect microfinance sector after licences revocation - Ghanamma.com<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ghanamma.com\/2019\/06\/01\/bog-outlines-plan-to-protect-microfinance-sector-after-licences-revocation\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"BoG outlines plan to protect microfinance sector after licences revocation - Ghanamma.com\" \/>\n<meta name=\"twitter:description\" content=\"Date: May 31, 2019 6:58pm Dr. Ernest Addison, BoG Governor. The Bank of Ghana (BoG) has outlined plans to ensure sanity in the microfinance sector after it revoked the licences of some 347 insolvent microfinance companies. 137 microfinance companies are currently in good standing. 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