The Non-Bank Financial Institutions (NBFI) play a critical role in building a strong and viable financial sector for the development of the national economy, Head, Banking Supervision Department at the Bank of Ghana (BoG) has said.

According to Raymond Amanfu, Savings and Loans Companies accounted for 45 percent of total credit of GHC3.97 billion of the NBFI sector.

Mr. Amanfu revealed this at the 7th Annual General Meeting of the Ghana Association of Savings and Loans Companies (GHASALC) which was on the theme: Regulations &Alternative Delivery Channels: the two routes to bridging Financial Inclusion Gap in Ghana.

He lauded the important role savings and loans companies play in the economy as agents of change, innovation and attraction in the financial landscape.

Mr. Amanfu said as Savings and Loans Companies struggle to improve on their identity, a key pillar for sustainability is the adequacy of capital which is needed for growth, absorption of risk and innovation.

“Companies must not only meet the minimum regulatory capital but must push for economic capital by attracting new investors, plough back profits and pay attractive dividends”, Mr. Amanfu stated.

Mr. Amanfu cautioned CEOs of S&Ls firms that under the new Banks & Specialized Deposit Institutions (SDI) law recently passed, savings and loans companies with inadequate capital would be subject to more stringent supervision.

Also, Board Chairman of GHASALC, Kofi Ampofo Agyapong said they are committed to ensure that the financial inclusion agenda of government continues to improve in line with national statistics.

He revealed that the Savings and Loans sector in 2016 contributed about 56 percent to the total assets.

“With over 2.5 million market share in the financial system, the sector undoubtedly contributes immensely to the transformation of a huge portion of the informal sector towards Ghana’s ultimate output-GDP” he stressed.

Mr. Ampofo Agyapong urged BoG to take the sector very serious in their quest to effectively manage and supervise the financial sector of Ghana.

“Effective management of this sector will undoubtedly loop in a huge chunk of our citizens in the rural areas onto the banking systems” he added.