DATA ON MFIs IN GHANA UNAVAILABLE-YAW GYAMFI

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Data on the impact of the businesses of Microfinance Institutions sub-sector are no available, inconsistent, wrongly formatted with no source documentation.
This was contained in a report presented by the Executive Director of the Ghana Microfinance Institutions Network, Mr. Yaw Gyamfi at the networks 11th General Meeting held at the Sunlodge Hotel in Accra.
Proposing, “An innovative way of collecting and validating data through the use of technology based on agreed indicators by the various MFI associations”
He continued that the Non-Banking and Microfinance institutions sub-sector endured a number of challenges during 2018. The issues he noted include weak capitalization, poor management, weak governance structure, high infractions and engagement in non-permissible activities.
“It was characterized by severely impaired capital and generally low asset quality. We entreat the institutions to deal with these challenges to avoid sanctions by the regulator and its subsequent untold hardship on our clients and the financial ecosystem in general.
These the Executive Secretary explained has culminated in threats to some depositors’ funds which has tough public confidence and undermined the financial inclusion efforts. “The clients also resorted to panic withdrawals in anticipation of proposed Bank of Ghana reforms of the sector which made some institutions weaker” he elaborated.
Mr. Gyamfi mentioned that there has been significant improvement in the networks relationship with the Bank of Ghana, the Ministry Of Finance and member Associations.
“GHAMFIN led the development of a number of proposals to petition the Bank of Ghana and Ministry of Finance on some intended activities and introduction of new directives. These went a long way to reduce the unintended consequences of most of the new directives especially in terms of approach in implementation”
He gave the assurance that, the network will continue to champion industry issues to the advantage of members in a way that will re-enforce institutional growth and development.


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