BoG to soon license new Savings & Loans firms; confidence restored – GHASALC

The Ghana Association of Savings and Loans Companies is optimistic the Bank of Ghana (BoG) will soon grant license to new Savings and Loans companies, following a rebound of activities after the financial sector cleanup.

In 2020, the Central Bank revoked the licenses of 23 insolvent Savings and Loans companies.

Speaking to Joy Business , the Executive Secretary of the  Ghana Association of Savings and Loans Companies, Tweneboah Kodua Boakye, said a number of companies have expressed interest in joining the sector awaiting the central bank’s approval.

He disclosed that a microfinance company has so far been granted a license to operate in the savings and loans sector after meeting the capital requirement.

“I am aware that since the BoG carried out the financial sector cleanup exercise, a microfinance company has been upgraded to the level of Savings and Loans Company”.

Mr. Boakye argued that the increase in the expression of interest to join the sector is a good indication that the Central Bank’s exercise has restored confidence in the sector.

“Initially, when the BoG started the exercise which led to the revocation of the licenses of the 23 Savings and Loans companies, some customers panicked, but now, we can all see that the regulator has rather helped the sector and boost confidence”.

Citing some of the benefits that have accrued after the cleanup exercise, Mr. Boakye said companies operating in the sector are now well capitalised.

He added that companies are also being strictly monitored to ensure that they adhered to good corporate governance practices.

He mentioned that the move has made it easy for operators and customers to engage in profitable ventures to protect depositors’ fund.

“The important part of all this is that depositors funds are very safe. This means that funds can be channeled into the economy to support Small and Medium Enterprises (SMEs) who are our main clients”.

He observed that Savings and Loans Companies have served a critical part of Ghana’s economy, providing liquidity to small businesses to create jobs and support households.

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