About 500 members of Micro-Credit Association of Ghana will not meet the deadline for the minimum capital requirement.
Results of a research supported by Business Sector Advocacy Challenge (BUSAC) in Kumasi revealed about 80 per cent of over 680 members of the association cannot meet the requirements.
Leadership of the association are calling for what they call a transitional band to accommodate current players not capable of meeting the deadline.
Executive Secretary of Micro-Credit Association of Ghana, Frank Mawutor Borbor is worried only less than 20 per cent can meet it.
“There should be a middle way, so we will be comfortable; we should be given a range from 0 to 2 million Ghana Cedis, where will be segmented to pay accordingly or extend the date.
“Some of the Tier 3s, with just 500,000 Ghana Cedis are changing lives and adding value to people’s life and we feel that they cannot go out of the operations,” he said.
The Bank of Ghana in 2015 announced the increment in the minimum capital requirement for financial institutions.
June 2018 is deadline for the implementation, but some financial institutions are already pleading for more time.
A research conducted by the leadership of the Micro-Credit Association of Ghana reveals 85 per cent of members cannot meet the deadline.
Two hundred and fifty out of the 681 active members were used for the research project by the Business Sector Advocacy Challenge.
The association has therefore agreed to the interposition of a new band to accommodate players not capable of meeting the Bank of Ghana’s June 2018 deadline.
Formerly, Money Lenders Association of Ghana, it rebranded itself as Micro-Credit Association of Ghana to avert the negative impact of public misconception about money lending.
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