You are here: HomeNews2019 08 07Article 770090

Business News of Wednesday, 7 August 2019

Source: Myjoyonline.com

BoG won't close down troubled Savings and Loans companies this week

Bank of Ghana (BoG) has denied reports that its planned shutdown of troubled Savings and Loans institutions will happen this week.

Sources close to the regulator maintain that even though the action will eventually happen it is not scheduled to take place this week.

The central bank has distanced itself from a list-making round on social media as its certified list of affected company to go down.

Planned clean-up of the Savings and Loans Companies

The BoG is expected to finalise the cleanup of the Savings and Loans sector by closing down companies that are said to be in serious financial crises.

The Bank has been tight-lipped on the timing, even though sources have noted that the BoG is ready to take action could anytime.

A trusted source close to the regulator last week told Joy Business that “we have always been ready to deal with these ‘troubled institutions’ that have failed to improve their financial position”.

The Finance Minister, Ken Ofori Atta in a recent interview with Joy Business hinted that the action which is happening before September this year.

The regulator has also assured that there is no need to for depositors to panic because everything is under control and their funds are safe.

Savings and Loans Companies on the shutdown

The Association of Savings and Loans companies have also added their voice assuring the public that the sector is safe and there is no need to panic.

The Association explains that a lot of its members are in strong financial standing to withstand any shocks, although few are having challenges.

Tweneboa Kodua Boakye, Executive Secretary of the Association told Joy Business that “it’s unfortunate that its bad news that sells, even though there are a lot of our members that are doing very well and contributing significantly to the entire financial system”.

He noted that the Association wanted the BoG to act quickly on the planned action as a further delay will only affect the operations of those in good standing.