Mike Nyinaku applauds BoG

The Managing Director of BEIGE Capital Savings and Loans, Michael Nyinaku has applauded the Bank of Ghana (BoG) for its strategic and quick action of restoring the confidence of the microfinance sector.

“I will commend the Central Bank for acting in a manner that has stabilised and contained confidence in the microfinance industry. Whatever challenges some institutions are facing will be temporal, everything will settle in relation to the microfinance gabs we have,” Nyinaku said, that it will be difficult to put a blame on the Central Bank for the recent challenges that hit the sector.

The microfinance business has recently come under a lot of fire from the regulator, customers and stakeholders in the country. Most of these microfinance institutions in the country have causes a lot of individuals and small and medium-scale businesses to lose their trading capital and investment.

Unfortunately, some of them at the time took advantage of its customers and exploited them for their selfish personal gains. Nevertheless, a lot of them are serving their stated purpose and adding value to the lives of people in this country.

The story of DKM is just one of the numerous negative incidents that have occurred in recent times. It has been revealed that some of its customers have experienced such loss of investment to other microfinance institutions in the past.

Mr. Nyinaku believed that the BoG, as a regulatory body, employs best industry standards and strategies to ensure that the industry is resilient and robust in the operations within the financial sector.

“The Central Bank did their best, but they cannot be regulating every institution on a daily basis,” saying “the system will take its own level. Competition in the industry would overtime streamline them and ones that were not well structured enough to survive will eventually not get to the top and that I believe is what is happening,” he added.

Mr. Nyinaku, who has led BEIGE to become of the leading indigenous financial institutions in the country, indicated: “People are naturally disposed to doing wrong, but how they react when some of these things happen is what matters. They cannot prevent them from happening like the Police. But when they happen how quickly do they act.”

BEIGE Capital is currently the leading Savings and Loans Company with an asset size of GH¢818million and a stated capital of GH¢120million and employ over 1,000 staff. The company has consistently grown it asset size from GH38m in 2011 to GH¢ 818million in 2015.

Available data indicates that the microfinance giant has supported the SME Industry with over GH¢400million in loans and advances to customers which currently serves over 600,000 customers.

BEIGE Capital leads a pack of over 30 registered savings and loans companies. BEIGE Capital was recognised as the Best Savings and Loans Company in 2015 by the Entrepreneurs Foundation of Ghana at the made in Ghana Awards 2015.

Mr. Nyinaku was recently recognised for his sterling contribution to the country’s financial sector and was recognised as one of Ghana’s 100 Most Influential individuals in 2015 by Global Media Alliance.