Non-Bank Financial Institutions call for autonomous regulatory body

Policy makers have been called upon to set up an autonomous regulatory body to oversee the operations of Non-Bank Financial Institutions (NBFIs) in the country.

The policy, it is said, would enhance the operational efficiency of these institutions whose number is growing by the day.

In an interview with the Financial Intelligence in Accra last week, Zenobia M. Amo-Hoyte, Manager in charge of the Makola Agency of the 1st National Bank called for the replication of what has been done for the rural and community banks, whose ARB Apex bank work as a mini regulator for the entire body.

Mrs Amo-Hoyte explained that Non-Bank Financial Institutions (NBFI) concentrated on providing financial support for the country’s large informal sector, adding that, “since the informal sector comprises over 70% of businesses in the country, there is the need to give special attention to institutions supporting their growth for the overall development of the country’s economy”.

According to Mrs Amo-Hoyte, the legislation establishing such an institution could be fashioned to entrust all basic supervisory responsibilities to the umbrella body which would operate under the supervision of the central bank. This to her, would enable the BoG to pay much attention to the Universal Banking institutions.

Among other factors that could enhance their support for the informal sector, she called for the introduction of a reasonably lower capital base that would enable the NBFIs to provide much credit for the business community. Mrs. Amo-Hoyte also pointed out that the government could assist the NBFIs in this direction by making available to them donor funds to support their credit operations.

The Manageress called for assistance in the area of capacity building to shore-up the efficiency levels of these institutions.

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