By: Fred Yaw Sarpong
Bank of Ghana (BoG) has appealed to the Savings and Loans Companies in the country to help end the regime of all unlicensed financial institutions exploiting the rural poor in unserved and underserved areas of the country.
The 1st Deputy Governor of the Bank of Ghana Mr. Millison Narh at a meeting with the Savings and Loans firms appealed to the companies to end exploiting the rural poor by unlicensed financial institutions
He was commenting on the role and impact of Savings and Loans Companies in promoting financial inclusion in Ghana.
Mr. Narh said it is good for non-bank financial institutions to penetrate the rural areas as they tend to be concentrated in the cities and large towns.
He however said most of these institutions have left room for unlicensed institutions to operate in such areas, exploiting patrons who are already poor.
He promised that the central bank will take critical action against all unlicensed financial firms operating in the country.
The Chief Executive Officer of the BEIGE Capital Savings and Loans Limited Mr Mike Nyinaku told Daily Express that his outfit pledged support to the Central Bank decision.
“We accept the challenge by the BoG to reach unserved and underserved parts of the country and for us at BEIGE Capital this ideal held by the Central Bank is in sync with our medium term strategic direction and pledge our support to help BoG to bring to a halt activities of unlicensed financial institutions exploiting their patrons,” said Mr. Nyinaku.
“It is actually part of our medium term ending 2018 strategic plan to expand our business across all the regions of Ghana and more especially to be at the doorstep of Ghanaians in the rural and smaller towns” he added.
Recent data available to the Bank of Ghana indicates that 80% of Ghana’s population is unbanked and the country’s financial sector is dominated by banks, with non-bank financial institutions accounting for 11% of total financial sector assets, and savings and loans companies with 5.7% of total assets.