BoG NOT RESPONSIBLE FOR COLLAPSE OF FINANCIAL INSTITUTIONS – SECOND DEPUTY GOVENOR

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The collapse of some financial institutions in Ghana has been attributed to unstainable business models, poor cooperate governance and meager compliance of regulatory requirements.
Mrs. Elsie Addo Awadzi, Second Deputy Governor of Bank of Ghana (BoG), revealed this during the delivery of her keynote address as the Special Guest of Honor at the 9th Annual General Meeting (AGM) of the Ghana Association of Savings and Loans Companies (GHASALC) at the Coconut Grove Regency Hotel in the Accra.
She explained that the insolvency and failure of some banks and microfinance institutions are as a result of poor risk management factors and not the will of BoG to revoke the license of any financial institution for no just cause.
Mrs. Awadzi advised savings and loans companies to abide by the acts governing the financial sector to ensure their sustainability and survival. She added that the BoG as a regulatory body is there to ensure the proper and effective functioning of all financial institutions in Ghana.
She noted further that sustainability of businesses is critical to achieving socio-economic growth, and savings and loans companies are major contributors to sustainable growth and development of the Ghanaian economy.
With reference to financial Inclusion, the Second Deputy Governor, explained that currently about 52% of the Ghanaian population have access to one financial service or the other therefore the remaining 48% still remain unbanked. She called on Savings and loans and other financial institutions to reposition themselves rebuild confidence in the general public to increase access to all.
Mrs. Awadzi continued that the number of people who possess mobile money account in Ghana is twice the number which hold normal bank accounts. This she said is an indication that there are lapses in the operations of the financial institutions and advised to explore digitization and take practical steps to ensure sustainability.
She gave the reassurance that BoG is committed to ensuring that Savings and Loans Companies are safe and sound as they take steps and dialogue with the association to explore effective ways of sustaining its member companies.


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