Ghana revokes licenses of 386 financial firms

The Bank of Ghana (BoG) has revoked the licenses of 386 micro credit and micro finance institutions in the country, APA learns here on Monday.The Business and Financial Times reports on Monday that the licenses were revoked with effect from May 31, 2019 by the central bank.
The bank revoked the licenses when it realised that 192 of the institutions were insolvent, while 155 had ceased operating even before the reform of the sector.The BoG has therefore appointed Eric Nipah as Receiver for the microfinance companies.”The revocation of the licences of these institutions 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 system,”,a statement issued by the BoG said.The revocation of the licenses, according to the bank, will protect the stability of the financial system and protect affected depositors and salvage depositors’ funds.