World Bank Country Director for Ghana is asking the Bank of Ghana to put in effective systems to clean up the mess in the Microfinance institutions and rural banks in the country.

According to Henry Kerali, a research by the World Bank has indicated that there is a gap in regulations for the MFIs which will adversely distract the economy due to its direct impact on the local economy.

He, however, disclosed that the World Bank is ready to support the regulator to carry out effective supervision on these institutions.

Henry spoke with JoyBusiness after a panel discussion to open the maiden Ghana Finance Week in Accra.

The three-day event provides the platform for financial analysts and corporate bodies to discuss possible solutions for the development of sustainable funding for the UN goals

“There are numerous of these microfinance, rural and community banks that the Central Bank cannot reach to effectively supervise so we are working with government and the Bank of Ghana through capacity building and other assistance to clean the sector,” he said.

Adding that, “We know that there are challenges in the sector, some of the microfinance firms are struggling to survive and we could use innovative ways without the Central Bank not regulating them individually but they will be supervised effectively’.

The microfinance institutions and rural banks in the country are said to be having a negative effect of the ongoing reforms in the banking system.

The challenges facing the sector are as a result of the lack of capacity by the Bank of Ghana to have an effective supervisory role on such financial institutions in the rural and peri-urban areas of the country.

The topic for discussion to open the forum was ‘mobilizing private and public financial resources to accelerate the achievement of Sustainable Development Goals in Ghana.’

Presidential Advisor on SDGs, Eugene Owusu tells JoyBusiness that government is making progress in achieving the targets in the goals.