PRESS RELEASE (Strengthening the Non-Banking Sector: A Shared Responsibility)
Following from these causes, the GNCCI urges BoG to strengthen its supervisory and regulatory mechanism in ensuring strict compliance by these companies to industry standards to avert future collapses. These companies are crucial in providing financial support and assistance to small businesses and individuals, who may have limited access to the traditional banks’ products given the requirements.
The issuance of licenses must be supported with proper and robust enforcement mechanism as well as avenues to continuously build the capacity of these Specialised Deposit-taking Institutions (SDIs) to mitigate risks and improve operational resilience and compliance. There is need for a conscious and collective effort to support and GNCCI Press Release (Strengthening the Non-Banking Sector: A Shared Responsibility) develop Ghanaian businesses to succeed. The GNCCI calls for better regulation in the financial sector that reflects the needs of the sector with more positive impacts and addresses critical issues such as regulatory lapses, weak enforcement and compliance.
It is our expectation that the remaining 137 microfinance companies and 31 microcredit companies will demonstrate good faith and constantly monitor and manage their risk exposures in building a healthy financial services system. The BoG’s anticipation of little or no job losses is untenable and shrouds the concomitant issues surrounding the collapse of these companies. BoG must come clear on the data and needs to engage stakeholders in addressing any potential job losses associated with the on-going reforms.
While commending the process initiated for payment of verified claims at designated financial institutions, the GNCCI urges the Receiver and the BoG to take into account the proximity between these institutions and depositors, particularly those living in the rural and peri-urban areas to minimize additional cost in accessing depositor’s funds. Government must continue to provide the right incentives on time to enable these institutions to deliver on their mandates.
The Chamber wishes to assure the private sector that it will continue engaging government, the Bank of Ghana and other relevant stakeholders to ensure a safe, sound, supportive, and stable banking sector and the larger financial sector. This will essentially help provide affordable credit to enable small businesses grow and create more sustainable jobs.
Let us all support the private sector by encouraging a healthy banking and financial transaction to protect the integrity of the financial sector.
Nana Dr. Appiagyei Dankawoso I
President, Ghana National Chamber of Commerce & Industry
Accra, 17th June, 2019.