Currently, the Bank has certified and approved over 340 microfinance companies whiles about 600 applicants await approval.
The Central Bank recently created the Other Financial Institutions Supervisory Department to deal specifically with this rapidly-expanding financial sub-sector.
According to Raymond Amanfu, Head of the other Financial Institutions Supervisory Department, the reason for capping is to deal with the rate at which microfinance companies have many times been a conduit for the perpetration of fraud that lure depositors with absurdly lucrative investment interest rates.
The Central Bank is tightening the entry requirements to ensure that only companies with the right capacities are licensed.
According to the revised rules, new entrants applying to operate as non-deposit-taking firms will require a minimum paid-up capital of GH?300,000, while deposit-taking institutions require a minimum capital of GH?500,000.
The BoG gave existing microfinance companies up to 30th June, 2016 to meet the new requirements. Institutions with up to five branches require an additional paid-up capital of GH?100,000 for each branch, while those with more than five branches require an additional GH?200,000 for each branch.
Bank of Ghana therefore expects everyone to meet the new regulations.
In a another ?development banks will be allowed to quote Yuan rates and also sell the Chinese currency this year following the rate at which more businesses in the country trade with the Asian nation.
According to the Governor of the Bank of Ghana (BoG), Dr. Kofi Wampah, ?this will make trading easier for those engaging in that line of business and will likewise favour the Cedi
since this will decrease the demand for Dollars, he said.
Mr. Wampah added that the central bank has introduced new currency-trading regulations for banks
to improve liquidity and boost transparency.