Bank of Ghana is reviewing the entire process of licensing new microfinance institutions.
Mr Milison Narh, First Deputy Governor of Bank of Ghana, said this on Friday at a media briefing in Accra after 70 microfinance institutions in the country had their licences revoked.
He said all regional and financial intelligence offices of the Bank are being resourced with staff to improve surveillance to intensify its intelligence network.
Mr Narh said collaboration with law enforcement agencies is also being improved to swiftly handle issues when they occur.
According to him, there are some 546 microfinance institutions operating in the country. Of the 546 institutions, 468 are microfinance companies, 67 money lending companies and 11 financial non-governmental organizations while 92 institutions are waiting the fulfillment of final approval requirements, he said.
He said the Bank has also increased the minimum paid up capital for microfinance companies and money lending companies from GHC 500, 000 and GHC 300,000 respectively to GHC 2,000,000.
On the revocation of licences of some 70 companies, Mr Narh said they failed to comply with the requirements of the bank.According to him, the affected microfinance institutions had not been issued with a final approval and license to operate, stressing that approval in principle expires after six months.