Government to ‘whip into line’ wayward microfinance companies

The Finance Minister, Seth Terkper, says the Bank of Ghana is taking stringent measures to sanitize the operations of Savings and Loan and Microfinance institutions across the country.

He mentioned strengthening of supervisory role through off-site surveillance for early detection of distress, effective onsite examination to ensure compliance with regulations as some of the measures.

The Central Bank will also embark on intensification of public education against unlicensed Microfinance companies, and the introduction of the Ghana Deposit Protection Bill among others as part of measures aimed at curtailing the negative practices associated with the banking system.

The Minister stated this when he presented a statement on the floor of Parliament today on the operations of Savings and Loan Microfinance companies in the country.

According to Mr. Terkper, the audit of the books of the companies, particularly, DKM have revealed weaknesses such as misreporting to BOG, weak governance structures among other.

Source: GBC

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