Central Bank to halt issuance of license to Savings and Loans

The Central Bank has hinted it may halt licensing new firms in the next few weeks to ensure new entrants merge with non-performing Savings and Loans companies.

There are currently about 32 licensed Savings and Loans Companies, despite the emergence of unlicensed ones.

In a speech read on behalf of the Governor of the Central Bank, Dr. Abdul-Nashiru Issahaku, at the launch of Goldenlink Savings and Loans Limited, the Bank revealed this will enable non-performing institutions to be supported by performing ones through the merger.

“Some of these institutions require that there is some new inversion of capital for them to survive, so one approach that the Bank of Ghana is considering for some time now is to issue a directive for a merger and acquisitions of these institutions if the institutions are unable to provide the required capital.

“So instead of issuing a new license our approach going forward is to impress upon these institutions to take over institutions that are not doing so well.”

Meanwhile, former President of the Association of Savings and Loans Dr. Emmanuel Owusu called on government to institute measures to enable savings and loans companies to clear cheques since the Banking Act does not give them the mandate to do so.