The Bank of Ghana has introduced sweeping reforms to Ghana’s microfinance sector, significantly raising minimum capital requirements and restructuring the industry to improve stability, governance, and depositor protection.
Under the new framework, existing institutions seeking to convert into Microfinance Banks must raise a minimum capital of GH¢50 million, while new entrants will be required to provide GH¢100 million by December 31, 2026.
The central bank says the move is aimed at ensuring stronger, better-capitalised institutions capable of safeguarding public funds.
To ensure a smooth transition, operators may recapitalise independently, merge or be acquired, transfer assets and liabilities to stronger institutions, or exit the market through an orderly winding-up process.
Institutions are required to notify the Bank of Ghana of their chosen option by June 30, 2026, with compliance updates expected by September 30, 2026. Failure to meet these timelines could attract sanctions, including operational restrictions.
As part of the reforms, all Rural Banks will be converted into Community Banks by March 31, 2026, with a new minimum capital requirement of GH¢5 million. Newly established urban Community Banks will be required to meet a higher threshold of GH¢10 million by the end of 2026, a measure intended to strengthen governance and community-level banking.
The reforms also place credit unions with assets of GH¢60 million or more under the direct supervision of the Bank of Ghana from the second quarter of 2026, while smaller cooperatives and susu operators will be classified as Last-Mile Providers operating under delegated oversight.
The central bank stressed that the reforms are not intended to collapse institutions but to modernise the sector, enhance risk management, and protect depositors.
Customers are expected to be safeguarded during mergers or transfers, with institutions required to provide at least 30 days’ notice ahead of major changes.
Overall, the Bank of Ghana says the new measures will build a more resilient microfinance sector capable of supporting small businesses, households, and financial inclusion, while reducing systemic risks.
