[ 2014-09-28 ]

Bank of Ghana to eliminate unregistered micro-finance groups
Ho, Sept. 28, GNA - The Bank of Ghana (BOG) is
collaborating with security agencies to locate and
eliminate unregistered micro-finance agencies
operating in the country.

Desmond Agbobah of the BOG Financial Institutions
Supervision Department, gave the hint at a
colloquium of tertiary students in Ho as part of
the 2014 National Financial Literacy Week
celebration.

The week, held under the aegis of the Ministry of
Finance, was on the theme:, “Financial
Literacy-Key to a Secured Future”.

Mr Agbobah said the security agencies and BOG
co-operation was in line with the Central Bank’s
policy, running since 2011, to reorganise the
micro-finance sector.

He said as a result of that reorganisation
process, micro-finance companies collapsing was
rare since the past three years.

Mr Agbobah said it was important clients wanting
to do business with micro-finance companies
checked for their BOG certification and not a
certificate of incorporation.

He said micro-finance was an important area of
financing to bring along people on the margins
into economic activity for accelerated national
development.

Mr Agbobah said there were currently 390 fully
registered micro-finance organisations, 50 money
lenders and seven financial NGOs.

Ignatius Wilson, Manager, Financial Stability
Department of BOG, said many clients of banks
found it difficult to understand their products.

He said people were also not aware official
compliant channels existed to thrash out issues
with their bankers.

Richard Afaglo, an Insurance Executive with the
State Insurance Company, who represented the
National Insurance Commission, stressed the need
for people to take policies to cover the various
risks they faced.

He said claim processing was not as rigorous as
perceived by the public.

Fredrick Dah, Executive of the Securities and
Exchange Commission, said brokers had a lot of
work to get people interested in putting small and
big moneys into investments.

He said a Capital Market Week was being planned
during which investment activities and
opportunities would be hyped.

Kwesi Livingstone, Group Chief Executive of
McOttley Holdings, said investments must
compensate for rate of inflation and that clients
must critically assess the corporate governance of
firms they would deal with.

He said cash for investment must be part of the
budget of individuals.

Rosina Akrofi, who represented the National
Pensions Regulatory Authority, said the three tier
pension scheme in Ghana was opportunity for all to
put money aside towards retirement.

Portia Essel, Senior Economics Officer, Ministry
of Finance, said target group for the celebration
was tertiary students to give them some insight
into the financial world.

Student of the Ho Polytechnic, Nurses Training
College and School of Hygiene in Ho were among
students who participated in the celebration.

Source - GNA

... go Back