BoG supports microfinance institutions

The Bank of Ghana (BoG) has donated three Nissan vehicles and equipment to three microfinance umbrella bodies in the country.

The equipment, which include three laptops and three printers, were to support the umbrella bodies in their oversight and supervision functions.

Akofa Avorkliyah, an advisor of the Bank of Ghana, who was speaking at the event, said the regulators need more resources and logistics for effective regulation and monitoring of institutions due to the increasing number of microfinance companies.

Speaking on behalf of the Second Deputy Governor, Dr. Abdul Nashiru-Issahaku, she said, “It is our hope that these items will assist you effectively co-ordinate the activities of your members in the coming years.”

Avorkliyah urged the executives of the umbrella associations to adequately maintain all the vehicles and equipment in order to prolong their lifespan, adding that “Adequate administrative support must also be offered to members of the associations.”

She said regular field visit must be paid in order to enhance the operations of members of the associations.

Ms Avorkliyah urged them to continue educating members of the associations on Bank of Ghana’s policies and regulations.

“There is no doubt that we find ourselves in a new and unchartered territory as far as the microfinance industry is concerned,” he said

Ms Avorkliyah said the Bank of Ghana was aware of the fact that microfinance regulation was not easy, noting that the industry encompasses a wide array of institutions that provide many services to different customers.

She stressed the need forstakeholders to protect customers and maximize profits while promoting financial inclusion.

So far, the Bank of Ghana has issued final licenses to 394 microfinance institutions.

Out of the 394 licenses issued, 45 were issued to money lending companies.

Three were FNGO while 344 were microfinance companies.