Member of Parliament Tano North Constituency, Dr. Gideon Boako is raising critical concerns over the GH¢50 million allocation to the establishment of the Women’s Development Bank in the 2025 budget statement.
The member on the minority side who is also on the Finance Committee of the house is questioning the sufficiency of the amount to establish a development bank given the regulatory requirements for establishing banks in the country.
The former Technical Economic Advisor of Dr. Mahamudu Bawumia is pointing out that that under existing banking laws, the capital requirements for establishing a Universal Bank or a Development Finance Institution far exceed the government’s proposed allocation.
According to the Bank of Ghana’s regulatory framework, universal banks are required to have a minimum paid-up capital of GH¢400 million, while Development Finance Institutions (DFIs) must meet thresholds ranging from GH¢300 million to GH¢1.2 billion, depending on their operational model.
Although he confessed his acceptance and support for the establishment of such a bank to support women, Dr. Gideon says the allocation in the budget is woefully inadequate for such a purpose under the current under the regulatory regime.
“I fully support the initiative to establish the Women Development Bank and sincerely hope that the government implements it effectively, in line with the expectations of many Ghanaians,” the minority MP admitted.
He however further explained that, “the GH¢50 Million Allocation for the Women Development Bank Given these statutory requirements, it is important to critically assess the government’s proposed GH¢50 million allocation for the establishment of the Women Development Bank. Is this allocation intended for: – A Universal Bank? – A Development Bank? – A Savings and Loans Company? – A Microfinance Institution?”
He is therefore calling on the government to clarify the specific purpose of the seed fund allocation subject to the laws in establishing a bank in the country to clear the confusion.
“Clarity on this matter would be beneficial to ensure the initiative aligns with existing regulatory frameworks,” the MP maintained.
Parliament is currently debating and scrutinizing the 2025 budget. With this concern raised, all eyes are now on the government to clarify whether the Women’s Development Bank will be a full-fledged financial institution or merely a scaled-down version with limited functions.
