The role of microfinance institutions (MFIs) in the edifice of the Ghanaian financial sub-sector; and their contribution to socio-economic development and growth of the country cannot be overemphasised. In recent years, the Ghanaian economy has witnessed the formal establishment of several microfinance institutions. Connoisseurs of activities in the financial sub-sector believe the introduction of microfinance institutions is timely to fill the lending void created in the financial industry ostensibly by universal banks and other deposit-taking institutions. That is, the presence of microfinance institutions allows individuals, small- and medium size enterprises (SMEs) to access loans for sustainable operations, development and growth of their respective businesses; and to contribute their quota to the growth of the Ghanaian economy. This affirms the valuable role of microfinance services in developing and emerging free market economies such as Ghana.   In Ghana, microfinance businesses witnessed significant growth in the early 2000s. Their operations helped to increase the Ghanaian banked population; they had more outlets than the main stream universal banks; and had an estimated client size of 8 million (World Bank, 2016). However, the proliferation resulted in the emergence of many new unregulated microfinance service providers. The activities of these unregulated MFIs had an adverse impact on the financial system; the latter was disrupted by the former in that, operations of the unregulated MFIs resulted in loss of savings by low-income households; and high incidence of fraud and insolvency. To stem the tide, guidelines were issued by the Bank of Ghana (BoG) in 2011 for all MFIs to be brought under a consistent regulatory framework (World Bank, 2016).   Licencing and Legal Framework After their incorporation, microfinance institutions acquire provisional licence required for their operations from the Bank of Ghana. The provisionally-licenced microfinance institutions are subsequently issued with a perpetual licence by the Bank of Ghana to fully authenticate their operations in the country. Further, effective and efficient microfinance institutions are required to be active members of the Ghana Association of Microfinance Companies (GAMC).   In consonance with trends emerging in many economies across the globe, the legal framework for regulating microfinance institutions in Ghana takes a tiered approach. The World Bank (2016) described the Bank of Ghana’s initiative as consistent with trends emerging in the international financial community. Activities of Specialised Deposit-taking Institutions (SDIs) including MFIs are categorised into four (4) tiers. Tier One englobes the activities of Rural and Community Banks (RCBs) and Savings and Loans Companies (S&LCs). Tier two comprises Microfinance Companies (MFCs) and Credit Unions (CUs). The former is a relatively new category introduced by the Bank of Ghana to ensure new businesses engaging in micro finance services are adequately accommodated, regulated, and supervised to ensure efficiency and effectiveness in their service delivery to customers. The activities of Credit Unions are primarily supervised by their parent association that is, the Ghana Co-Operatives Credit Unions Association while MFCs are supervised by the BoG.   Money Lending Companies (MLCs) and Financial Non-Governmental Organisations (FNGOs) are found in Tier Three. The former is a new designation for businesses engaged in lending while the latter refers to organisations that were instrumental in the introduction of modern microfinance methodologies in the 1990s. In principle, tier three institutions are non-deposit-taking. However, they may take and hold compulsory savings as security against loans contracted to clients. The extent of supervision by the Bank of Ghana on MFCs tends to be stricter than on FNGOs. Persons engaged mainly in savings commonly called Susu Collectors, and those engaged in lending known as Money Lenders are found in Tier Four. Factors such as levels of risk, institutional sizes, and capacities determine licencing, registration, capital, and other requirements by the Regulator as stipulated in the Banks and Specialised Deposit-Taking Institutions Act of 2016, Act 930 (World Bank Group, 2016).   Objective, Vision and Mission of MFIs Generally, the underlying objective of microfinance institutions is to provide microfinance products and services to individuals, small- and micro-enterprises. Their vision, among others, is to contribute meaningfully to Ghana’s socio-economic development and growth by becoming relevant, significant and efficient vehicle for mobilising, channelling and allocating funds to the banked and unbanked. Microfinance institutions seek to tailor their financial services to adequately meet the needs of their clients; and to become a strong force to reckon with in the financial industry.   Like any other group of organisations that is well-organised and focused, microfinance institutions have a mission. That is, to provide quality, but affordable financial services to their existing and prospective clients. To achieve this objective, microfinance companies are committed to motivating their staff; adhering strictly to banking rules and regulations; becoming socially responsible; and ensuring higher returns on investment to meet the expectations of stakeholders. However, a candid analysis revealed thus far, actualisation of the foregoing through practical implementation of regulations and prudential norms remains a major challenge to many microfinance institutions across the country.   Financial Products and Services The financial products of most microfinance companies can be categorised into three. These include deposits, loans and investments. The deposits may include micro-savings and special-savings; the categories of loan may include micro SME loans, personal loans, emergency loans, and micro loans, among others. The investment option available at most microfinance institutions is fixed deposits. The operations of microfinance institutions ensure individuals and businesses in the informal sector who would hitherto be excluded from the financial system gain access; and benefit equitably from the available financial resources through deposits and loan applications, among other essential services. The services of microfinance companies could be described as strategic to addressing the financial needs of the informal sector in general.   Effective and well-functioning microfinance companies could contribute significantly to poverty reduction by providing the requisite services to the poor, needy and vulnerable in our various communities. It is worth-emphasising microfinance companies are primarily licenced to provide essential products and services to individuals and firms in both the formal and informal sector. However, the flexibility in accounts openings and loan applications requirements makes MFIs very attractive to most