• About
  • Advertise
  • Privacy Policy
  • Contact
Wednesday, October 22, 2025
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
No Result
View All Result

BOG issues Directive On License and Capital Requirements for Development Finance Institutions

M.Cby M.C
March 19, 2021
Reading Time: 4 mins read
M.Cby M.C
in Banking, Sub Top Stories, Sub Top Stories1
0
BOG issues Directive On License and Capital Requirements for Development Finance Institutions

Dr. Ernest Addison - Governor of the Bank of Ghana

The Bank of Ghana has issued a directive on license and capital requirements for Development Finance Institutions (DFI). Section 6 of the Development Finance Institutions Act, 2020 (Act 1032) forms the basis of the directive. The Bank’s Secretary, Ms. Sandra Thompson signed a public notice containing the details of this directive.

Eligibility

 The BOG specified that a person who seeks to carry on a Development Finance Business (DFB) shall be a body corporate formed under the Companies. However, the Bank warned that no person shall carry on a DFB as defined under the Act unless it has licensed that person.

Application for License

The Bank of Ghana also outlined the application process for persons or corporate bodies who seek to undertake DFB in the country. The Central Bank said a person who seeks to carry on a DFB shall apply in writing to the Bank of Ghana. This must, however, be in line with the relevant provisions of the DFI’s Act, 2020 (Act 1032).

RelatedPosts

Ghana’s Banking Sector Loses Nearly GH¢100m to Fraud — BoG Report Reveals

GSE Trading Volume Crashes 90% in a Quiet Session

20% Appreciation of the Cedi Will Hurt the Totality of the Economy, Economist Cautions

Furthermore, the BOG specified that the application for a license shall be accompanied by certain relevant documents.  The Bank also require the applicant to provide the official name of the institution that needs the license . BOG also required the applicant’s authorized business as registered at the Companies Registry .  The Bank of Ghana also demands a list of all shareholders and ultimate beneficial owners of the applicant. 

Other processes

Furthermore, applicants are to provide the particulars of the proposed directors and key management personnel concerned with the management of the applicant. 

“An application for a license shall indicate clearly the type of development finance license that is being applied for. The Bank of Ghana may require that information supplied to the Bank be verified, certified. Or otherwise authenticated in the manner that the Bank of Ghana may determine”.

Bank of Ghana

Moreover, the BOG stated that it will inform the the applicant that it has received the application. The Bank will do this within ten days. Also, BOG will communicate its decision in writing to the applicant within six months after the receipt of an application.   “The Bank of Ghana shall within three (3) months inform the applicant in writing of the decision of the Bank of Ghana”.

ADVERTISEMENT

Minimum Paid-Up Capital and Application Processing Fees

According to the BOG, the initial minimum paid-up capital is GH¢800,000,000, GH¢600,000,000, and GH¢300,000,000 for Wholesale, Retail, and Guarantee DFI license respectively.

BOG pointed out that the initial minimum paid-up capital will depend on the Development Finance (DF) activities undertaken by an intuition. This is applicable to institutions that combine all the 3 activities. That is, Wholesale, Retail, and Guarantee. Moreover, BOG requires an institution that undertakes all the three activities to pay GH¢1,200,000, 000 as an initial minimum paid-up capital.

Also, BOG stated that institutions combining Wholesale and Retail DF will require an initial minimum paid-up capital of GH¢1,000,000,000. Whilst those combing Wholesale and Guarantee DF will require GH¢1,000,000,000.  Meanwhile, the Retail and Guarantee DFI will require an initial minimum paid-up capital of GH¢800,000,000.

The BOG notes that, not less than 60% of the required capitalization shall be brought into Ghana in convertible currency. This is in the case of full or majority foreign ownership of the DFI. The BOG expects an application processing fee of GH¢20,000 through Payment Order with the BOG as the Payee.

Provisional Approval

“The Bank of Ghana shall not issue a license to an applicant unless the Bank of Ghana is satisfied that the feasibility report submitted by the applicant is based on sound analysis and prudent, reasonable assumptions”.

Bank of Ghana

Nevertheless, the BOG indicated that it may, where necessary, restrict the activities that a DFI is permitted to undertake. The bank will however, do this in accordance with the Act 1032. “A license issued under the Development Finance Institutions Act, 2020 (Act1032), shall be subject to conditions that the Bank of Ghana may impose”.

READ ALSO: AGI calls for reconsideration of proposed taxes

Tags: Bank of GhanaBanking sectorDevelopment Finance Institutionsfinancial inclusionLicense and Capital Requirements
Please login to join discussion
Previous Post

US and China publicly rebuke each other in first face-to-face meeting under Biden

Next Post

The player from Japan received an error message when he was

Subscription Form

Related Posts

Ghana’s Banking Sector Loses Nearly GH¢100m to Fraud — BoG Report Reveals
Banking

Ghana’s Banking Sector Loses Nearly GH¢100m to Fraud — BoG Report Reveals

October 21, 2025
GSE Trading Volume Crashes 90% in a Quiet Session
Securities/Markets

GSE Trading Volume Crashes 90% in a Quiet Session

October 21, 2025
20% Appreciation of the Cedi Will Hurt the Totality of the Economy, Economist Cautions
Economy

20% Appreciation of the Cedi Will Hurt the Totality of the Economy, Economist Cautions

October 20, 2025
Countdown to GH¢100K Grand Prize Begins as Fidelity’s ‘Sika Bumm Reloaded’ Heats Up
Banking

Countdown to GH¢100K Grand Prize Begins as Fidelity’s ‘Sika Bumm Reloaded’ Heats Up

October 20, 2025
Fitch Upgrades Ghana’s 2025 Growth Forecast to 4.9% Amid Inflation Cooldown and Cedi Strength
Economy

Fitch Upgrades Ghana’s 2025 Growth Forecast to 4.9% Amid Inflation Cooldown and Cedi Strength

October 20, 2025
GSE Ends September with a Bang — Composite Index Climbs Past 8,000 Points in Spectacular Market Comeback
Securities/Markets

GSE Ends September with a Bang — Composite Index Climbs Past 8,000 Points in Spectacular Market Comeback

October 20, 2025
Big Push: Mahama Cuts Sod for Several Road Construction in Volta Region
General News

Big Push: Mahama Cuts Sod for 73.6km Cape Coast–Takoradi Dual Carriageway, Pledges Rapid Completion 

by evansjrOctober 21, 2025
A member of a forensic team inspects a window believed to have been used in a robbery at the Louvre Museum in Paris, France, on October 19, 2025.
Europe

Louvre Heist Losses Estimated Around €88m

by Comfort AmpomaaOctober 21, 2025
Old Mutual Ghana Champions Stakeholder Care with GH¢130K Group Welfare Payout
Insurance

Old Mutual Ghana Champions Stakeholder Care with GH¢130K Group Welfare Payout

by M.COctober 21, 2025
Haruna Iddrisu Champions Collaboration, Advocates UDS Bill at Conference
General News

Minority Leader Condemns Dismissals and Erosion of Rule of Law As Parliament Resumes 

by Silas Kafui AssemOctober 21, 2025
Speaker Bagbin Swears in Two Members of Parliament
General News

Speaker Bagbin Swears in Two Members of Parliament

by Emmanuel Tibila BoasahOctober 21, 2025
24-Hour Economy Cost Underestimated, Sarkodie Bemoans
Economy

24-Hour Economy Cost Underestimated, Sarkodie Bemoans

by Michael Teye-Bio NaduteyOctober 21, 2025
Big Push: Mahama Cuts Sod for Several Road Construction in Volta Region
A member of a forensic team inspects a window believed to have been used in a robbery at the Louvre Museum in Paris, France, on October 19, 2025.
Old Mutual Ghana Champions Stakeholder Care with GH¢130K Group Welfare Payout
Haruna Iddrisu Champions Collaboration, Advocates UDS Bill at Conference
Speaker Bagbin Swears in Two Members of Parliament
24-Hour Economy Cost Underestimated, Sarkodie Bemoans

Recent News

Big Push: Mahama Cuts Sod for Several Road Construction in Volta Region

Big Push: Mahama Cuts Sod for 73.6km Cape Coast–Takoradi Dual Carriageway, Pledges Rapid Completion 

October 21, 2025
A member of a forensic team inspects a window believed to have been used in a robbery at the Louvre Museum in Paris, France, on October 19, 2025.

Louvre Heist Losses Estimated Around €88m

October 21, 2025
Old Mutual Ghana Champions Stakeholder Care with GH¢130K Group Welfare Payout

Old Mutual Ghana Champions Stakeholder Care with GH¢130K Group Welfare Payout

October 21, 2025
Haruna Iddrisu Champions Collaboration, Advocates UDS Bill at Conference

Minority Leader Condemns Dismissals and Erosion of Rule of Law As Parliament Resumes 

October 21, 2025
Speaker Bagbin Swears in Two Members of Parliament

Speaker Bagbin Swears in Two Members of Parliament

October 21, 2025
24-Hour Economy Cost Underestimated, Sarkodie Bemoans

24-Hour Economy Cost Underestimated, Sarkodie Bemoans

October 21, 2025
The Vaultz News

Copyright © 2025 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships

Copyright © 2025 The Vaultz News. All rights reserved.

Discover the Details behind the story

Get an in-depth analysis of the news from our top editors

Enter your email address