The Bank of Ghana (BoG) has announced a significant increase in the minimum capital requirement for institutions seeking to operate as Microfinance Banks (MFBs), setting the new threshold at GH¢100 million.
The directive forms part of a comprehensive reform framework issued by the central bank on January 27, 2026, aimed at restructuring Ghana’s microfinance sector to improve stability, strengthen governance and safeguard depositors’ funds.
Under the new guidelines, all newly licensed Microfinance Banks must meet the GH¢100 million minimum capital requirement. Existing institutions transitioning into the MFB category will be required to raise a minimum capital of GH¢50 million by December 31, 2026.
According to the Bank of Ghana, the reforms are intended to address persistent weaknesses in capital adequacy, governance and operational efficiency that have undermined the sustainability of many institutions within the sector.
The central bank explained that Microfinance Banks will now operate as licensed deposit-taking institutions under Act 930, with a core mandate to serve Micro, Small and Medium Enterprises (MSMEs), as well as formal and informal groups and individual clients.
Existing Savings and Loans Companies, Finance Houses, Deposit-taking Microfinance Companies, and Micro-Credit Companies have been given a transition window to meet the new capital requirement and convert into Microfinance Banks. Institutions may achieve compliance through standalone capitalisation, mergers and acquisitions, orderly transfer of assets and liabilities to qualified institutions, or voluntary exit from the market.
Affected institutions are required to formally notify the Bank of Ghana of their chosen transition pathway by June 30, 2026. The central bank cautioned that failure to meet the prescribed milestones will attract regulatory sanctions, including possible restrictions on business operations.
The new framework also introduces tighter shareholding limits to strengthen corporate governance. Individual shareholding in Microfinance Banks will be capped at 40 per cent, families or related parties at 50 per cent, and registered groups at 70 per cent, while corporate entities may hold up to 100 per cent ownership.
As part of the broader reform agenda, the Bank of Ghana has reorganised the microfinance sector into four tiers: Microfinance Banks, Community Banks, Credit Unions and Last-Mile Providers.
The ARB Apex Bank is also set to be restructured, with an expanded mandate to provide centralised services such as liquidity support and shared technology platforms.
The central bank says the reforms are aimed at restoring confidence in the sector and enhancing its contribution to financial inclusion and economic development.
