The Bank of Ghana has, with effect from today, revoked the licences of 29 insolvent microcredit companies (see attached list).

The Bank of Ghana has also revoked the licences of 10 insolvent microcredit companies that have ceased operations.

This action is pursuant to section 7 of the Non-Bank Financial Institutions Act, 2008 (Act 774), which mandates the Bank of Ghana to revoke the licence of a non-bank financial institution (NBFI) licensed under that Act if that institution among other things ceases to carry on business or ceases to satisfy a qualification under the Act or contravenes any provision of the Act or rules or directives issued by the Bank of Ghana.

The Bank of Ghana has also notified the Registrar of Companies at the Registrar General’s Department of the revocation of these licences, and has requested that the Registrar commence winding-up proceedings against these companies.

A total of 70 microcredit companies were licensed by the Bank of Ghana from 2011 until the end of 2015 under Act 774, to provide micro loans. Severe undercapitalization, poor lending and risk management practices, and poor corporate governance practices were among many other reasons accounting for the poor performance and eventual collapse of the 39 failed institutions whose licences have been revoked today. Despite notices issued to the affected institutions by the Bank of Ghana over the last few years requiring remediation of identified regulatory violations and other supervisory concerns, these institutions failed to address the issues brought to their attention.

Following the revocation of the licences of these institutions, a total number of 31 microcredit companies will continue to operate. Going forward, the Bank of Ghana is strengthening its regulatory and supervisory framework, and promoting confidence in the microcredit sector through:

? A comprehensive review of licensing and supervisory policies and directives; ? A review of the minimum capital requirements for microcredit and encouraging possible consolidation through voluntary mergers and acquisitions; ? Introduction of proportional corporate governance, fit and proper, and risk management directives; ? Strict supervision of licensed micro credit companies and enforcement of relevant regulatory requirements; and ? Increase the resources available for effective supervision of licensed micro credit companies.

The Bank of Ghana assures the public of its commitment to promoting stability of the financial system.

Kindly direct any questions to the Other Financial Institutions Supervision Department of Bank of Ghana. You may call telephone number 0209125348/0302-665619.

Issued by Bank of Ghana on May 31, 2019

ANNEX: LIST OF 39 MICROCREDIT INSTITUTIONS WHOSE LICENCES HAVE BEEN REVOKED

MICROCREDIT COMPANIES – INSOLVENT S/No. NAME OF INSTITUTION

1 Allied Wealth Money Lending Limited

2 Bennet Money Lending Limited

3 Bremco Money Lending Company Limited

4 Calmad Money Lending Company Limited

5 Catamount Finance Money Lending Limited

6 Citizens Money Lending Limited

7 Divine Announcement Money Lending

8 Fountain Money Lending Services Limited

9 GDFS Money Lending Limited

10 GFI Capital Management Money Lending Limited

11 Great Africa Money Lending Limited

12 Hatmag Money Lending Limited

13 Haubins Money Lending Limited

14 Index Money Lending Limited

15 KAF Investment Money Lending Limited

16 KBN Money Lending Limited

17 KYC Money Lending Limited

18 McOttley Money Lending Limited

19 N & J Money Lending Limited

20 Obrapa Money Lending Limited

21 One2One Money Lending Services Limited

22 Orbit Money Lending Co. Limited

23 Pitsea Ways Money Lenders Limited

24 P-Mag Investment Money Lending Services Limited

25 Sat Finance Money Lending Limited

26 Shammah Capital Money Lending Limited

27 SNJ Money Lending Limited

28 Uni-focus Money Lending Limited

29 Zeta Money Lending Limited

MICROCREDIT COMPANIES – INSOLVENT AND CEASED OPERATIONS S/No. NAME OF INSTITUTION

1 Boafo Yena Money Lending Limited

2 CFI Money Lending Limited

3 CIF Money Lending

4 First Assurance Money Lending Services Limited

5 Global Point Investment and Money Lending Services Limited

6 Intelligent Money Lending Company Limited

7 Kan Money Lending Company Limited

8 PD PAG Money Lending Limited

9 R.P.I.C. Money Lending Services Limited

10 TCP Money Lending Limited