We are developing a plan to clean up the savings and loans sector – BoG

Company News of Tuesday, June 4, 2019

Source: citinewsroom.com

2019-06-04

The Bank of Ghana will soon be focusing on the savings and lending sector as part of measures to clean up Ghana's banking space.

The central bank is in the process of developing a plan to clean up the savings and loans sector, as it has done in other categories of the banking sector.

Speaking of Citi TV's Point on View on Monday, Head of Supervision of Other Financial Institutions, Mr. Joseph Amoah-Awuah, said that more than 6 million GH ¢ of depositors' funds were at stake in savings companies, credit and financing.

He added that the Bank of Ghana did not yet have the resources to clean these spaces, but that it would act in due course.

"Estimating the importance of deposits at risk is well known, exceeding 6 million GH ¢. We need to do other work to document those responsibilities, and so on. You can not touch it if you do not have a resolution plan, "he said.

"In our system, the Bank of Ghana is the resolution authority, but it can not move if it does not have material resources. The work is in progress. The Governor of the Bank of Ghana has made this commitment and we are trying to clean the financial system as a whole. The plan is not ready because there must be a comprehensive plan, "he told show host Bernard Avle on Monday.

The recent consolidation of the Central Bank's financial sector resulted in the revocation of licenses for 347 microfinance institutions and 39 microcredit institutions.

Of the 347 microfinance institutions whose licenses were revoked, 192 were insolvent, the other 155 having ceased operations.

This exercise is now leaving the microfinance space with 137 microfinance companies active in the country.

The BoG then appointed Eric Nipah as the receiver of the specified microfinance institutions, also in accordance with Article 123 (2) of Law 930.