The BoG cleaned up the banking sector and the microfinance sectors. It has since served notice of an impending clean up in the savings and loans sector.
Bank of Ghana is not in a hurry to collapse Savings and Loans companies
The Governor of the Bank of Ghana, Dr. Ernest Addison says the central bank will do all it can to protect savings and loans companies that have the potential of surviving in the long run rather than revoke their licenses.
But speaking at the monetary policy committee’s press conference to announce the policy rate, Dr. Addison said the first option for the Central Bank is to rescue savings and loans companies that are solvent but rather having liquidity challenges.
“We are always very careful about making decisions on license revocations. Without clear data which suggest the institution is insolvent, the bank of ghana does not act. we don’t take license revocation on the basis of liquidity shortages; no institution which is solvent but illiquid has had its license revoked.”
“We will start to look at that sector on the basis of whether the institutions are solvent and be effectively run in the long-term,” he added.
The BoG further indicated that it is waiting to receive funds from the Finance Ministry to enable it to undertake the clean-up of the savings and loans sector.
There are currently over 30 savings and loans companies in Ghana; a good number of which are unable to meet customers’ demands for deposits.
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