Bank of Ghana introduces major reforms to strengthen microfinance sector
24th March 2026
The Bank of Ghana (BoG) has announced wide-ranging reforms for the microfinance sector, introducing higher minimum capital requirements and stricter governance standards to strengthen the industry and protect customers.
Dr Seth Kwame Anani, Policy Lead at BoG’s Financial Institutions Policy Department, explained that the reforms aim to restore public trust and curb fraud in the sector. He made the remarks during the Absa-UPSA Law School Quarterly Banking Roundtable VIII in Accra, which focused on “Regulating Microfinance in the Age of Fraud: Restoring Confidence and Growth.”
Under the new rules, all microfinance institutions will transition into microfinance banks by January 2027. Community banks and existing institutions seeking conversion must meet a minimum capital requirement of GH¢50 million, while new entrants will need GH¢100 million. Institutions are required to comply with these thresholds by December 31, 2026. As the deadline approaches, affected institutions must decide whether to recapitalise, merge, or exit the sector.
Dr Anani emphasised that the reforms are customer-focused, not designed to reduce options for consumers. “The goal is to create institutions with the right risk management framework so that customers are served efficiently, safely, and with dignity,” he said. He added that stronger institutions reduce vulnerabilities and ensure customers benefit fully from financial services.
The reforms also aim to promote a cultural shift in governance, focusing on risk management from the top down to build resilience against fraud. Dr Anani highlighted BoG’s investments in supporting infrastructure, including a collateral registry and a sector intelligence platform for real-time cyber threat monitoring.
Akwasi Aboagye, CEO of Bayport Savings and Loans, underlined the complexity of fraud risks in the sector, noting that organised crime syndicates target institutions across all levels. He called for coordinated industry responses, including information sharing and stronger internal accountability to enforce zero tolerance for fraud.
However, former CEO of Dalex Finance, Ken Kwamina Thompson, cautioned that regulations alone will not succeed without addressing systemic infrastructure gaps. “The Bank of Ghana is focusing on regulations, which is good, but the surrounding infrastructure is lacking. Many cases could languish in court for years,” he said, calling for specialised financial courts to ensure faster dispute resolution.
The reforms signal a comprehensive effort by BoG to professionalise the microfinance sector, improve customer protection, and build resilience against fraud, while also highlighting the need for complementary infrastructure improvements.