The Bank of Ghana says it would close down and prosecute microfinance institutions (MFI), which are operating without licence from the bank.<\/p>\n
The Bank is also collaborating with appropriate authorities to investigate MFI, which defraud unsuspecting customers.<\/p>\n
Director of other Financial Institutions Supervision Dept,Mr Raymond Amanfo,\u00a0 said the Bank constantly dialogues with operators in the industry on strategic and operational issues.<\/p>\n
Mr. Amanfo made this known at the panel session on micro-finance,\u00a0 as part of the Second University of Ghana Business School Conference on Business and Development in Accra on the theme: \u201cSustainability on Enterprise Development.\u201d<\/p>\n
He said the bank sees microfinance institutions in Ghana as agents or catalyst for the realization of the dreams of economic prosperity.<\/p>\n
He gave the assurance that\u00a0 the bank would continue to provide a sound regulatory environment for the micro-finance sector.<\/p>\n
\u201cWe also expect practitioners to engage in prudent activities, aimed at protecting customers, maximizing profits and providing meaningful micro-finance services to the poor,\u201d he added.<\/p>\n
He said the bank would continue to engage the microfinance institutions Apex bodies on issues affecting the industry so as to find workable solutions to existing challenges.<\/p>\n
Mr Amanfo said the Central Bank was also helping these institutions to refocus on their primary and core mandate of providing efficient and effective financial services to the poor.<\/p>\n
He said some of the challenges facing the micro-finance institutions include poor liquidity management skills due to inexperience weak credit administration, policies and practices, the diversion of loanable funds into unprofitable and unsustainable projects, as well as the irregular submission of prudential returns to the Bank of Ghana.<\/p>\n
He said the Central Bank has issued final licences to a total of 447 MFI, with the breakdown as 390 micro-finance companies, 50 money lending companies and seven financial Non-Governmental Organisations.<\/p>\n
He said at the end of May, this year, the total assets of these institutions stood at GH\u20b5688.45 million, representing about 1.0 per cent of the total assets of the banking industry.<\/p>\n
Loans and advances granted by the micro-finance institutions amounted to GH343.53 million during the same period.<\/p>\n
\u201cTotal deposits mobilized during the period, on the other hand,\u00a0 totaled \u00a0 GH344.75 million with borrowings amounting to GH186.23 million,\u201d he added.<\/p>\n
The Director said the bank has started receiving prudential returns from the licensed\u00a0 MFI, while the bank is also embarking on on-site examination of some of these institutions.<\/p>\n
\u201cThe Central Bank, in collaboration with the Ministry of Finance has organised series of financial literacy programmes to educate and inform the public on micro-finance activities,\u201d he said.<\/p>\n
<\/p>\n
Source: GNA<\/p>\n","protected":false},"excerpt":{"rendered":"
The Bank of Ghana says it would close down and prosecute microfinance institutions (MFI), which are operating without licence from the bank. The Bank is also collaborating with appropriate authorities to investigate MFI, which defraud unsuspecting customers. Director of other Financial Institutions Supervision Dept,Mr Raymond Amanfo,\u00a0 said the Bank constantly dialogues with operators in the […]<\/p>\n","protected":false},"author":14,"featured_media":5216,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[38,4],"yoast_head":"\n