The Bank of Ghana is set to shutter some Non-Bank Financial Institutions (NBFI) grappling with acute liquidity issues.

The Central Bank has cited these liquidity challenges as a significant hurdle for these institutions in fulfilling their financial obligations to clients and depositors.

Despite the regulator's efforts to sustain these institutions, the difficulties persist, prompting the impending closure. Dr. Ernest Addison, the Governor of the Bank of Ghana, conveyed this information during the Monetary Policy Committee press briefing.

He highlighted that certain legacy institutions in the non-banking sector are still unable to meet depositor payments.

“You know that we have some legacy institutions in the non-bank sector that are in a sense not able to meet depositor payments and these are legacy problems.

“We have not been able to raise the necessary resources which would allow those institutions to be resolved and the depositors' funds returned to them. It’s an issue that we’re looking closely at under this IMF programme”.

The Governor, without disclosing the specific institutions, noted that provisions would be made to address the challenges posed by these legacy issues.

“The plan is to set aside some resources from the budget hopefully, and once those resources are identified, we will take care of that legacy problem in the non-bank financial institution sector”.

In the period spanning 2017 to 2019, the Central Bank initiated a banking reform that resulted in the closure of numerous financial entities across Tier 1, 2, and 3 categories. This extensive action, known as the Banking Sector Cleanup, led to the revocation of licenses for 420 financial institutions.