New Microfinance Institutions to Meet GH¢100m Capital – BoG
By Praisebell Rosemond Larbi
The Bank of Ghana (BoG) has announced a major overhaul of capital requirements for microfinance institutions, setting a minimum stated capital of GH¢100 million for new entrants as part of reforms aimed at strengthening stability, governance and confidence in the sector.
The new requirements are contained in updated regulatory guidelines for the microfinance, community banking and credit union sector, which take effect from, January 29, 2026.
Under the guidelines, existing microfinance institutions, rural and community banks, and credit unions are required to raise their minimum capital to GH¢50 million by the end of 2026. However, any new institution seeking to enter the sector must meet a significantly higher threshold of GH¢100 million, reflecting the Central Bank’s determination to curb undercapitalisation and weak governance structures.
According to the Bank of Ghana, the revised capital framework is designed to address long-standing structural and operational weaknesses that have constrained the sector’s ability to support financial inclusion, savings mobilisation and credit delivery to small businesses and households.
“The reforms are intended to enhance resilience, protect depositors, and ensure that institutions operating in the sector have the financial capacity to withstand shocks,” the Central Bank said.
ARB Apex Bank to Be Restructured
As part of the broader reform agenda, ARB Apex Bank Limited, which serves as the apex institution for rural and community banks, will be restructured with an expanded mandate.
The Bank of Ghana explained that the Apex Bank will be repositioned to provide critical centralised banking and shared services, including liquidity management, risk oversight, technology support and payment services, to strengthen supervision and operational efficiency across the sector.
The Central Bank said both existing institutions and the Apex Bank must take concrete steps to transition into the new regulatory framework, in line with timelines and requirements outlined in the guidelines.
Flexible Transition Options for Operators
To ensure a smooth transition, the BoG has provided several compliance pathways for affected institutions. These include:
• Independent recapitalisation to meet the new minimum capital thresholds
• Mergers and acquisitions to consolidate balance sheets and operations
• Portfolio transfers to stronger and more stable institutions
• Orderly exit from the market through a regulated winding-down process
Institutions are required to notify the Bank of Ghana of their preferred compliance option by June 30, 2026, and submit evidence of progress by September 30, 2026.
The Central Bank warned that institutions that fail to engage the process or demonstrate credible progress could face regulatory sanctions, including restrictions on business activities.
Capital Levels to Be Reviewed Periodically
The Bank of Ghana added that the minimum capital requirement will be reviewed periodically, depending on prevailing macroeconomic and financial sector conditions.
The reforms follow lessons from previous microfinance sector failures and signal a decisive regulatory shift toward fewer, stronger, and better-capitalised institutions, capable of supporting Ghana’s financial inclusion agenda without compromising depositor protection or systemic stability.
