Ghana - Apply for Microfinance Bank License

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Procedure

Apply In-Person:

1. To Apply for Microfinance Bank License in Ghana, the applicant has to approach the Bank of Ghana. contact link
2. Every application for a license shall be made in writing to the Head, Other Financial Institutions Supervision Department Bank of Ghana, Accra for consideration and shall be accompanied by:
   • The application must be accompanied with a certified true copy of the regulations, the names, addresses and occupations of persons including their corporate affiliations who would hold significant shareholdings, directly or indirectly in the proposed banking business, the feasibility reports including a business plan and financial projections for the first five years and areas of specialization intended, and documentary evidence of the capital, their sources and other sources of funds.
   • Full particulars of and detailed and precise definition of activities it proposes to carry out.
   • Details of the registered place of business, principal place of business accessible to the public and suitable for the services contemplated and a description of other places where it proposes to do business and the areas it proposes to serve.
   • Names, addresses, occupations, and corporate affiliations of persons who hold or would hold significant shareholdings directly or indirectly in the proposed venture and the respective values of such holdings or proposed holdings.
3. The applicant has to make sure that he or she has all the required documents that are required for this process to be successful and they can be found under the "Required Documents" section of this page.
4. The Central Bank may interview the promoter, proposed directors and senior management personnel in the course of appraisal and may also inspect the books and records of the company to satisfy itself about the representations made or information furnished by the applicant.
5. The Central Bank may issue provisional approval for the issuance of a licence to the applicant on such terms and conditions, as it may consider necessary and appropriate if it is satisfied that:
   • The applicant would carry on banking business with integrity, prudence and the required professional competence and
   • The applicant has an initial paid-up capital as required under section 5, to hold a licence.
6. The Bank of Ghana shall issue a final approval and a license to carry on banking business, after the Bank of Ghana is satisfied:
   • With the organisational and infrastructural arrangements, as well as Security arrangements made by the applicant and
   • That the applicant has complied with the terms and conditions stipulated in the provisional approval.
7. The Bank of Ghana may refuse an application for a license to carry on banking business if the Bank of Ghana is not satisfied with the merits of the application or in view of prevailing conditions in the banking sector or in keeping with its banking policy.
8. An applicant reserves the right of an appeal to the Minister of Finance.
9. The Bank of Ghana shall communicate its decision on an application for a banking license within three months from receipt of complete information.
10. Payment of appropriate fees should be made and that can be found under the "Fees" section of this page.
11. Non-refundable processing fees which shall accompany each application and licensing fees shall be paid before the final issuance of the license.
12. The processing time for this procedure takes three months.

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Required Documents

Submission of:

• Operational and policy manuals.
• Audited pre-operating accounts.
• Operational budget for first year.
• Recruitment and induction of staff.
• A copy of the certificate of incorporation must be attached.
• Registration Certificate from other recognized bodies as may be applicable.
• Tax clearance certificate from Ghana Revenue Authority (GRA).
• A business plan and financial projections (income statement, balance sheet, and cash flow) for the first five (5) years of operations.
• Evidence of payment of a non-refundable processing fee of GH¢500.00.
• Evidence of request for Police clearance for shareholders, directors, and key management staff.

Office Locations & Contacts

Contact Details
Head Office, Accra
Bank of Ghana
One Thorpe Road
P.O. Box GP 2674, Accra
GQVV+6J Accra, Ghana
Email: [email protected]
Phone Numbers: +233-30-2666174 – 6 / +233-30-2666361 – 5 / +233-30-2666902 – 8 / +233-30-2666921 – 5
Fax: +233-30-2662996

Cedi House (Head Office Annex)
Phone Number: +233-30-2665252

Hohoe Office
P.O. Box 116, Hohoe
Contact number: +233-35-2222045/ +233-35-2222122

Kumasi Office
P.O. Box 1989, Kumasi
Phone Numbers: +233-32-2022551/ +233-32-2023944 / +233-32-2024807

Sunyani Office
P.O. Box 598, Sunyani
Phone Numbers: +233-36-2027161 / +233-36-2027260

Tamale Office
P.O. Box 340, Tamale
Phone Numbers: +233-37-2022130 / +233-37-2022664 / +233-37-2022982

Takoradi Office
P.O. Box 532, Takoradi
Contact number: +233-31-2024035 / +233-31-2024372
Contact link
Location link

Eligibility

• No person other than a body corporate incorporated in Ghana shall be eligible to apply for a license to carry on the business of banking in Ghana.

Fees

• Evidence of payment of a non-refundable processing fee of GH¢500.00or as determined by the Bank of Ghana.

Validity

• Microfinance Bank License validity is 18 months.

Documents to Use

Please attach documents that can be used by people. e.g. links

Sample Documents

Please attach sample completed documents that would help other people.

Processing Time

• The processing time for this procedure takes three months.

Related Videos

Videos explaining the procedure or to fill the applications.
Attach videos using the following tag <&video type='website'>video ID|width|height<&/video&> from external websites.
Please remove the '&' inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver,
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
e.g In the following url 'http://www.youtube.com/watch?v=Y0US7oR_t3M' Video ID is 'Y0US7oR_t3M'.

Instructions

• Since 2003, Universal Banking has replaced the three-pillar banking model – development, merchant and commercial banking. It has leveled the playing field, and opened up the system to competition, product innovation and entry. With improved macroeconomic conditions and prospects, the industry has grown into 23 banks, diversified in geographical origin, corporate character and reach in the global financial markets. The licensing policy of the Bank of Ghana will continue to pursue the underlying objectives of establishing a unique and rich banking tradition. At this stage the entry of foreign banks would be limited to truly internationally active financial institutions.

Required Information

• The name of the company
• The company's objects or authorized business
• That the company can enter into a legally binding agreement
• The name of the first directors of the company
• That the powers of the directors are limited in accordance with the law
• The number of shares in which the company is registered
• The number of shares each subscriber will own on incorporation and the amount payable for the shares
• A declaration that the liability of the members of the company is limited
• A business plan and financial projections (income statement, balance sheet, and cash flow) for the first five (5) years of operations.
• Details of assumptions upon which the financial projection has been made.
• Objectives and aims of the proposed Microfinance Institution.
• Justification for the establishment of the Microfinance Institution
• The organizational structures of the company setting out in detail the functions and responsibilities of the top management team.
• Other information that relates to the viability of the business.
• Information on capital and documentary evidence of sources of funds.
• Information on other matters that applicant considers relevant for the determination of the application and
• Such other additional information or particulars which the Bank of Ghana deems appropriate or may require for the determination of the application.

Need for the Document

• Licenses are typically issued by a national banking regulator to applicant corporations that meet its banking requirements. The general bank license allows a bank to engage in all banking activities, such as retail banking, merchant acquiring, cash management, asset management and trading.

Information which might help

• The Bank of Ghana may refuse an application for a licence to carry on banking business if the Bank of Ghana is not satisfied with the merits of the application or in view of prevailing conditions in the banking sector or in keeping with its banking policy.

Other uses of the Document/Certificate

Please explain what are other uses of obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.

External Links

Link

Others

More information which might help people.