BoG won't close down troubled savings and loans companies this week

BoG won't close down troubled savings and loans companies this week
Source: Ghana | Myjoyonline.com | Joy Business | AI
Date: 07-08-2019 Time: 01:08:06:pm

Bank of Ghana (BoG) has denied reports that it plans to shut down some struggling savings and loans institutions this week.

Sources close to the regulator maintain that even though the action will eventually happen, it is not scheduled to take place this week.

The central bank has distanced itself from a list circulating on social media, as those to be affected by the action. 

Planned clean-up of the savings and loans companies

The BoG is expected to finalise the cleanup of the savings and loans sector by closing down companies that are said to be in serious financial crises.

The Bank has been tight-lipped on the timing, even though sources have noted that the BoG could take that action anytime.

A trusted source close to the regulator last week told Joy Business that “we have always been ready to deal with these ‘troubled institutions’ that have failed to improve their financial positions”.

The Finance Minister, Ken Ofori-Atta, in a recent interview with Joy Business, hinted that the action could happen before September.    

The regulator has also assured that there was no need for depositors to panic because everything was under control and their funds are safe.     

The assurance

The Association of Savings and Loans companies has also added its voice assuring the public that the sector is safe and there is no need to panic. 

The Association explains that a lot of its members are in strong financial standing to withstand any shocks, although a few are having challenges.

“There are a lot of our members who are doing very well and contributing significantly to the entire financial system,” Executive Secretary of the Association, Tweneboa Kodua Boakye, told Joy Business.

The Association, he said, wanted the BoG to act quickly on the planned action as a further delay will only affect the operations of those in good standing.