BoG defends microfinance reforms amid industry cost concerns

The central bank says the overhaul is not intended merely to impose tougher regulatory requirements on savings and loans companies and other specialised deposit-taking institutions, but to create a stronger and more trusted financial sector capable of withstanding economic shocks.

The Bank of Ghana (BoG) has mounted a strong defence of its ongoing reforms in the microfinance and specialised deposit-taking institutions sector, saying the measures are critical to restoring confidence, strengthening institutional resilience and addressing weaknesses that have undermined the stability of the industry.

The central bank is also working on additional regulatory instruments, including guidelines on corporate governance and risk management, which are expected to be published for industry stakeholders to review and provide comments.