The Bank of Ghana (BoG) is to establish regional offices to monitor the activities and build capacities of microfinance institutions Mr Joseph Frempong-Manso, Deputy Chief Manager, BoG has announced.
He said BoG would also educate such financial intuitions and the public on what they need to know about their affairs.
“Some do not have the license from BOG to operate and tend to collaborate with others to work; this is not helping the industry so the establishment of BOG regional offices,” Mr Frempong-Manso said in Accra on Tuesday at the first Ghana Association of Savings and Loans Companies (GHASALC) stakeholders meeting.
“We are going to provide sensitisation programmes to the public and players in the financial sector to enlighten them on banking and its policies,” he said.
Speaking on the theme, “Including savings and loans companies among other microfinance institutions in the operational guidelines: Effects on client perception and operational performance of savings and loans”, Mr. Kofi Ampofo Agyapong, President of GHASALC, said though savings and loans companies constitute a key segment of Ghana’s financial sector, there were a number of challenges affecting the image, operations and sustainability of its members.
He said the main actors in the savings and loans arena were of the view that the lumping of savings and loans companies together with other microfinance providers was affecting the image and fortunes of their businesses given reported cases of unethical practices by some of the microfinance providers.
“This has always created problems for all sector players but most especially to the savings and loans companies due to some similarities in service provision perceived by clients of both sector categories and the public,” Mr. Ampofo Agyapong said.
He said to address the concern, GHASALC commissioned a study to identify the underlying factors that was causing such misconception by the public especially when such issues were left unaddressed, would affect the profitability and further sustainability of GHASALC members.
Addressing participants from the financial sector, who comprised of heads of banking firms, Ministry of Finance and other financial services department of the BoG, Mr. Ernest Senyo Dzandu, Executive Director, CDC Consult Limited, enumerated some concerns undermining the operations of micro-finance institutions.