The Bank of Ghana has rolled out a far-reaching reform of the microfinance sector, raising minimum capital requirements, restructuring the industry into clearer categories, and giving operators until December 31, 2026, to fully comply; a move aimed at strengthening confidence, protecting depositors, and stabilising the financial system.

At the centre of the new framework is a significant increase in capital thresholds. Existing institutions seeking to transition into Microfinance Banks will be required to raise a minimum capital of GH¢50 million, while new entrants will need GH¢100 million, marking a sharp shift from previous requirements.

According to the Central Bank, the changes are designed to ensure that institutions serving the public are adequately capitalised and better governed.

Clear options for existing institutions

To avoid disruption, the Bank of Ghana has outlined several transition pathways. Institutions may meet the new capital requirements on their own, merge with or be acquired by other operators, transfer assets and liabilities to stronger institutions, or opt for a voluntary exit under an orderly winding-up process.

Operators must formally notify the central bank of their chosen option by June 30, 2026, with progress reports due by September 30, 2026.

Institutions that fail to act within the stipulated timelines risk sanctions, including restrictions on operations.

Rural banks to become Community Banks

As part of the reform, all Rural Banks will be converted into Community Banks by March 31, 2026. These Community Banks will be required to meet a new minimum capital of GH¢5 million, while newly established urban Community Banks must raise GH¢10 million by the end of 2026.

The aim is to strengthen community-level banking while ensuring broader ownership and stronger governance.

Credit unions and last-mile providers

Credit unions with assets of GH¢60 million or more will now fall under direct supervision of the Bank of Ghana beginning in the second quarter of 2026, while smaller cooperatives and susu operators will be classified as Last-Mile Providers, operating under delegated supervision.

What it means for customers and businesses

The central bank says the reforms are not meant to shut down institutions, but to modernise the sector, improve risk management, and safeguard customer deposits. Depositors are expected to be protected during any mergers or transfers, with institutions required to give at least 30 days’ notice before major changes.

Overall, the Bank of Ghana believes the new framework will create a stronger, more resilient microfinance sector that can better support small businesses, households, and financial inclusion — while reducing the risks that have plagued the industry in the past.