Investors urged to scrutinise microfinance firms

Mr Awudu Hayatudeen, General Manager of the Builsa Community Bank Limited (BOCO-Bank), has called on the public, especially prospective investors, to seek advice from financial professionals before dealing with micro-finance institutions.

Speaking to the Ghana News Agency at Sandema in the Builsa District of the Upper East Region, Mr Hayatudeen expressed regret about instances where people allowed themselves to be defrauded by some micro-finance institutions in the country.

“It is really pathetic that the situation has led to the collapse of many people’s businesses and the breaking-up of families,” he said, and cautioned prospective investors against being enticed with high return rates.

He gave the assurance that his outfit and other rural and community banks would partner to assist the Bank of Ghana (BOG), the regulator,to weed out such fraudsters.

He said BUCO –Bank was one of the credible banking institutions in the Upper East Region and had instituted both internal and external control measures to protect the purse of customers.

Mr Hayatudeen said from the modest beginning of one branch, the bank had grown to four branches located at Bolgatanga, Sandema and Fumbisi all in the Upper East Region and Yagba in the Mamprugu Maudori District of the Northern Region.

“As a community-owned financial institution established in 1996, the Builsa Community Bank is regulated by the BOG and also supervised by the ARB Apex Bank, has about 50,000 clients,” he stressed.

He said the bank for the past 20 years in its operations had performed creditably and was also rated strong by the Efficiency Monitoring Unit of Apex Bank in 2015.

He cited the bank’s status as the only rural bank in the Upper East Region that met the mandatory minimum stated capital of GH¢500,000.00 for 2016, as a key success of the bank.

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