[ 2014-10-01 ]

BoG Tasks Savings & Loans Companies
The Central Bank has urged all savings and loans
companies operating in the country to put measures
in place to help them meet the revised capital
requirement of GH¢15 million.

The bank will soon announce a new deadline to that
effect, Henry Kofi Akpenamawu Wampah, Governor of
the Bank of Ghana (BoG), has indicated.

Dr Wampah, who made this known in an address read
on his behalf during the official opening of ABii
National Savings & Loans Limited at Avenor
Junction, Accra at the weekend, said credit risk
was the most significant risk that financial
institutions faced recently.

He urged management of such institutions to
maintain high standards in credit administration
and delivery in order to ensure that shareholders'
capital was not dissipated in loan and other
operations losses.

'The formal banking system in developing economies
such as ours tends to ignore the low end of the
market which it perceives as risky and unviable.
This has prevented banks from making inroads into
that segment of the market.'

'The entry of ABii National into the financial
service industry of Ghana will obviously increase
the existing competition to the betterment of
customers.

With a customer deposit of GH¢17.5 million within
one year of operation, ABii National now boasts of
ATMs, which are linked to gh-link, the national
switch.

Managing Director of ABii National, Godfried
Osei-Boakye, said Abii services and products are
tailor-made to suit different micro businesses.

'We are also working with one of our partner banks
to roll out a Visa prepaid reloadable card that
will enable our regular traveler customers and
non-customers alike, load cash in cedi and spend
in dollars anywhere in the world. We are also
working in partnership with GhIPSS in the rolling
out of eZwich point of sales devices.'

It is estimated that there are 2.5 billion adult
people worldwide who do not have access to formal
financial services.

The World Bank's Global Findex Surveys also state
that almost 80 percent of people living on incomes
of less than $2 per day are financially excluded.

Source - Daily Guide

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