The Bank of Ghana (BoG) few days ago revoked the licences of 347 Microfinance Companies.

According to the central bank, "these actions were taken pursuant to section 123 (1) of the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), which requires the Bank of Ghana to revoke the licence of a bank or Specialised Deposit-taking Institution (SDI) where the Bank of Ghana determines that the institution is insolvent or is likely to become insolvent within the next 60 days.

“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 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 added.

Bernard Otabil, Assistant Director, BoG, speaking on Peace FM's morning show, ‘Kokrokoo’, Tuesday threw more light on the issue.

Watch in the video below