Stop panic withdrawals; we're not collapsing - GHASALC

The Association of Savings and Loans Companies have appealed to customers to have confidence in the financial sector despite the challenges confronting it.

The panic withdrawals the association decried are unnecessary and a potential threat to their existence.

Executive Secretary of the association, Mr K. Koduah, disputed claims that savings and loans companies were collapsing.

The Association stressed that they are in constant consultation with the sector regulator, Bank of Ghana to ensure that the right things are done at all times in the best interest of their clients.

In an interview with Nyankonton Mu Nsem on Rainbow Radio 87.5FM, he appealed to Ghanaians to stop spreading the rumours since it has the potency of collapsing their companies. He was responding to a statement issued by the association assuring customers that their deposits are safe.

The statement read: "Customers may be going through a period of uncertainty and experiencing some difficulties in dealing with some of our members. We are however by this press statement assuring all customers that the sector is vibrant and evolving and in readiness to serve our customers better'. The greater majority of members are stable and customers should maintain their confidence in these institutions they have worked with over the years. Customers should, therefore, disregard publications and rumours that suggest that the Savings & Loans sector is collapsing.’’

Meanwhile, the Bank of Ghana (BoG) has hinted of closing down insolvent companies. Governor of the Central bank, Dr. Ernest Addison last week told journalists that Savings and Loans Companies in bad standing will be shut down.

He added that actions taken so far to stabilise the banking sector would not be different from the Savings and Loan Companies.

“The engagement would ensure that the necessary funds can be raised on the part of the government to cushion depositors of these institutions. It believed that this could one of the tough measures that that regulator is planning to take to sanitize the entire industry,” the Governor said.