The Bank of Ghana (BoG) has revoked the licenses of 192 insolvent microfinance companies.
The Central Bank has also revoked licences of another 155 insolvent microfinance companies that have ceased operations.
In a press release Friday, BoG explained that actions were taken pursuant to section 123 (1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930).
This action requires the Central Bank to revoke the license of a bank or Specialized Deposit-taking Institution (SDI) where the Bank of Ghana determines that the institution is insolvent or is likely to become insolvent within the next 60 days.
Consequently, the Bank of Ghana has appointed Eric Nipah as Receiver for the specified institutions in line with section 123 (2) of Act 930.
“The revocation of the licences 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, thereby constituting a threat to the stability of the financial system.
In a related development, BoG has with effect from today revoked the licenses of 29 insolvent microcredit companies.
The Bank of Ghana has also revoked the licences of 10 insolvent microcredit companies that have ceased operations.
Below is the list of some of the companies
story by: Nancy Obimpeh/radiogoldlive.com
