BoG revokes approval letters of 70 institutions

The Central Bank says it has revoked the probationary endorsement or ‘approval in principle’ of some 70 microfinance institutions and a money lending company which applied for banking licences recently.

A notice to banks, financial institutions and the general public dated 31st December, 2015, signed by Caroline Otoo, Secretary of BoG and issued in Accra, said applicants are granted ‘approval in principle’ for a defined period usually six months and are required to meet conditions stated under the ‘approval in principle’ letter.

Though the Central Bank did not specify the actual conditions which the affected institutions failed to meet, it noted that “some microfinance and money lending companies, despite several reminders, including our Notice No BG/GOV/SEC/2015/10 of 15th July, 2015, have failed to meet the conditions precedent to the issuance of a final licence.”

“The Bank of Ghana therefore wishes to inform all banks, non-bank financial institutions and the general public that the ‘approval in principle’ granted to the under-listed institutions is hereby revoked.”

The affected institutions include Cedar House Microfinance Services Limited, Ezi Access Microfinance Limited, KB Star Microfinance Company Limited, Money Link Microfinance Limited, Xpress Link Microfinance Company Limited, Quick Loans Microfinance Limited, Vanliz Microfinance Services Limited, Glow Microfinance Limited, Sufficiency Microfinance Limited and Apex Microfinance Limited.

Others include Atwiman Microfinance Company Limited, Genesis Seed Microfinance Limited, Look-Ahead Microfinance Limited, Silison Microfinance Limited, Softbiz Microfinance Limited, Growth Champions Microfinance Limited, Money Home Microfinance Limited, Reach Microfinance Limited, Sika Dwa Microfinance Limited, TTS Microfinance Services Limited and a host of others.

The money lending institution affected by the announcement is Growth Pole Money Lending Limited.

The Bank of Ghana grants licences to persons and organisations who wish to conduct the business of banking, including microfinance and money lending.