The Bank of Ghana has revoked the licence of 347 microfinance companies as well as 39 microcredit companies, a statement issued by the central bank has said.
The revocation of the licences of these institutions, the statement said, 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.
By the revocation of these licences, the Bank of Ghana seeks to protect the stability of the financial system and to protect affected depositors, the statement issued on Friday added.
According to the Bank of Ghana, Eric Nipa of PriceWaterhouseCoopers has been appointed as receiver for the collapsed companies to ensure that depositors funds are recovered and reimbursed.
“In line with the hierarchy of creditor claims set out under Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), other creditors of the failed institutions will be settled by the Receiver upon validation of their claims and to the extent that the Receiver is able to realise value from the remaining assets of these institutions,” the BoG stated.