The Bank of Ghana (BoG) has urged savings and loans companies to consider ‘acquisitions and mergers’ with microfinance institutions to strengthen their capital base for expansion.
Figures released by the BoG in the first quarter of 2016 indicated that Ghana has over four hundred microfinance institutions, whilst it records over 50 savings and loans companies.
Speaking at the corporate awards night for BEIGE Capital Savings and Loans Limited in Accra, the First Deputy Governor of the Bank of Ghana, Mr. Millison Narh appealed to stakeholders in the industry to consider mergers as a sustainable move that can make savings and loans companies more attractive to the informal sector.
He was of the view that, larger businesses with strong financial standing can acquire smaller ones to protect them against untimely dissolution. According to him, latest financial data showed a 33.6 per cent year-on-year growth for Non-Bank Financial Institution (NBFI).
“The Savings and Loans category accounted for 54.2 per cent share which indicates advancement in the category,” he said.
Expressing optimism in the economy, Mr. Narh stressed that economic indicators show that Ghana’s economy will turn around in the short term to witness economic growth.
“The economy is gradually turning around, and as we continue to implement the policies and reforms under the IMF programme, we would restore macroeconomic stability and pave the way for sustainable growth in the long run,” he said.
Mr. Narh used the opportunity to congratulate all the staff and some customers of BEIGE Capital who were present.
“I want to also congratulate you for the laudable achievements and your dominance at the Tier II category,” he said. He charged the staff to make the award spur them on to greater heights in the future.