Bank of Ghana revokes licences of 347 micro-finance companies

The Bank of Ghana revoked the licenses of 347 insolvent micro-finance firms after the conclusion of a cleanup of the banking sector.

It cancelled the permits of 192 firms currently in operation in addition to 155 that have ceased operations, the Accra-based regulator said in emailed statement. The regulator also annulled the licenses of 39 insolvent micro-credit companies, it said in a separate statement.

“The revocation of the licenses 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,” said the regulator. The Bank of Ghana “seeks to protect the stability of the financial system.”

The government made funds available to enable the receiver to pay micro-finance depositors, the central bank said.