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Business News of Friday, 14 June 2019

Source: Myjoyonline.com

Savings and Loans sector cleanup: To panic or not to panic?

The Bank of Ghana over the past two years has taken what some may describe as bold moves in the Banking and specialized deposit-taking space.

Since August 2017 till date a total of 9 banks and 386 microfinance and microcredit institutions have been collapsed.

These closures have significantly had an impact on the economy as jobs, businesses hanged in the balance. One important effect of this is the debt that has accumulated. As at March 2019 the resolution of the issues in the financial sector have cost us GHC 11 billion.

The most recent is the microfinance and microcredit institutions. Now the attention is going to shift from that to the Savings and Loans, Rural and Community Banks and Finance Houses.

What does the Savings and Loans sector look like? Here's some data from the Ghana Association of Savings and Loans Companies (GHASALC)

What lessons can we learn and how should this be carried out? My guests, Tweneboah Koduah Boakye, Executive Secretary of the Ghana Association of Savings and loans Companies (GHASALC) and Executive Director, Ghana Microfinance Institutions Network( GHAMFIN), Yaw Gyamfi believe panicking is not the way and all should remain calm.

Watch video below: