The Bank of Ghana has urged rural banks and Microfinance agencies to meet their revised minimum capital requirement by February 2020 or be sanctioned.

In a statement the Central bank called on shareholders of the institutions to be guided by the directive and act accordingly.

“Further to Bank of Ghana Notice No. BG/GOV/SEC/2015/08 dated 3rd July, 2015, which announced the revision of minimum capital for Rural/Community Banks and Microfinance Institutions to One Million Ghana Cedis (GH?1,000,000) to be complied with by 31st December, 2017, and Two Million Ghana Cedis (GH?2,000,000) to be complied with by 30th June, 2018, respectively, the Bank directs all institutions to meet their respective minimum capital by 28th February, 2020.

“Pursuant to Section 28(1) of the Banks and Specialised Deposit-Taking Institutions Act 2016 (Act 930) and Section 11 of the Non-Bank Financial Institutions Act, 2008 (Act 774), Rural/Community Banks and Microfinance Institutions which fail to comply with their respective minimum capital by the above date shall be sanctioned.

“Shareholders, Directors, Operators of Rural/Community Banks and Microfinance Institutions are to take note of the above and be guided,” the statement said.

The development comes in the wake of the withdrawal of the licenses of some 23 savings and loans and finances houses.

A statement announcing the withdrawal of the companies said they had become insolvent and can no longer honour their obligations to their customers.