The Bank of Ghana will soon descend on the savings and loans sector as part of measures to clean up Ghana’s banking space.
The central bank is currently going through processes to come up with a plan to clean up the savings and loans sector just like it has done in other categories within the banking sector.
Speaking on Point on View on Citi TV on Monday, the Head of Other Financial Institutions Supervision, Mr. Joseph Amoah-Awuah said over GH¢ 6 million of depositors’ monies are at risk in the savings and loans and financial houses.
He said the Bank of Ghana does not have the required resources yet to clean up those spaces but will act in due course.
“Estimates of how much deposits are at risk is public knowledge, over GH¢6 million. We have to do further works to document these liabilities and so on. You cannot touch it if you do not have a resolution plan,” he said
“In our system, Bank of Ghana is the resolution authority but it cannot move if there is no physical resources behind it. Work is being done. The Governor of the Bank of Ghana has given that commitment and what we are trying to do is to clean the entire financial system. The plan is not ready because there has to be a comprehensive plan,” he told host of the show, Bernard Avle on Monday.
The Central Bank’s recent financial sector clean-up saw it revoking the licenses of 347 microfinance institutions and 39 microcredit institutions.
Of the 347 microfinance institutions whose licenses were revoked, 192 of them were insolvent while the remaining 155 had ceased operations.
That exercise now leaves the microfinance space with 137 active microfinance companies in the country.
The BoG subsequently appointed Eric Nipah as Receiver for the specified microfinance institutions, also in line with section 123 (2) of Act 930.