Microfinance Shake-Up: Bank of Ghana Imposes GH¢100m Minimum Capital for New Microfinance Banks

The Bank of Ghana has announced sweeping reforms to restructure the country’s microfinance sector, introducing a new minimum capital requirement of GH¢100 million for any institution seeking to operate as a newly licensed Microfinance Bank (MFB). Existing institutions will transition under a lower but significant capital threshold of GH¢50 million.

The directive—issued in a detailed guideline on January 27, 2026—marks the most ambitious overhaul of the sector since the financial clean-up exercise. The Central Bank says the reform is aimed at strengthening governance, boosting operational efficiency, and protecting depositors from persistent institutional failures.

According to the Bank, the newly created MFB category will be recognised as “licensed deposit-taking institutions under Act 930” that primarily serve Micro, Small, and Medium Enterprises (MSMEs), as well as individuals and informal groups.

The guideline states that the steep capital requirement is necessary to “address weaknesses with capital, governance, and operational efficiency which have undermined the viability of most institutions and threaten depositors’ funds.”

Existing Firms Face December 2026 Deadline

Savings and Loans Companies, Finance Houses, Deposit-taking Microfinance Companies, and Micro-Credit Companies have until 31 December 2026 to comply with the new GH¢50 million capital requirement and transition into the Microfinance Bank category.

To meet this threshold, institutions must choose from four regulatory pathways:

Standalone recapitalisation,

Consolidation through mergers or acquisitions,

Orderly transfer of assets and liabilities to a qualified institution, or

Voluntary exit from the market.

Institutions are required to formally inform the Bank of Ghana of their chosen option by 30 June 2026. The regulator warns that “failure to meet milestones provided in this Notice shall trigger sanctions, including restrictions on business operations.”

Stricter Shareholding Limits Introduced

The reform also introduces new shareholding limits to curb concentration of ownership and improve governance within Microfinance Banks. Under the new structure:

1. An individual can hold up to 40%
2. A family or related party, up to 50%
3. A registered group, up to 70%
4. Corporate bodies may hold up to 100%

Sector Restructured Into Four Tiers

The Bank of Ghana has recast the entire microfinance landscape into four clearly defined tiers:

Microfinance Banks (MFBs)

• Community Banks
• Credit Unions
• Last-Mile Providers

As part of the reform, the ARB Apex Bank will undergo restructuring to expand its mandate to include liquidity support, shared technology platforms, and centralised services for all categories of institutions.

The Central Bank emphasises that the reforms are intended to ensure that the microfinance sector “enhances its contribution to financial inclusion and development.”