NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Monday, September 29, 2014

The Ghana Association of Microfinance Companies (GAMC) has backed moves by the central bank to put a limit on the number of operating permits that can be issued to microfinance companies.

According to the Association’s National Board Chairperson, Collins Amponsah-Mensah, there is no doubt the huge number of microfinance institutions affects the ability of the oversight body — the Bank of Ghana — to efficiently regulate the sector.

“We are in full support of it [capping the number of MFIs]. The number [of MFIs] that has been issued with licences should be looked at and supported to be able stay within the regulations. Let us ensure that they are all complying fully with the regulations. Those that are not able to, let us ensure that the right sanctions are imposed on them so that we can say, for instance, that we licenced 400 companies and all of them are in compliance with the BoG regulations — submitting their prudential reports and so on,” he said.