Bank of Ghana reforms to fight sham MFIs

The Bank of Ghana has said legal reforms it has drawn up will be enough to address the microfinance crisis facing the country.

Thousands of depositors have been left frustrated after some microfinance companies they invested in failed to pay back their deposits.

The situation has left many customers angry. But speaking at the 25th anniversary of NDK Financial Services in Accra, First Deputy Governor of the Bank of Ghana, Dr. Millison Narh, said two new laws being passed would address the challenge.

“The Bank of Ghana will also issue a number of guidelines and directives including areas of risk management, corporate governance, outsourcing, measures, and acquisition to align with the upcoming Acts and give direction to the industry as well as further strengthen the supervisory framework of the central bank,” he stated.

He added: “We have faced the Finance Committee of parliament; we have taken them through all these laws. I think it has gone through first reading, second reading, so, hopefully, when they come back, these laws will be passed and we have a better framework for dealing with these companies that are going down.