Savings & Loans firms battle identity crisis in Ghana
Tuesday, May 31, 2016
Savings and loans companies in the country have appealed to the Bank of Ghana to consider creating a new identity for the industry, as the image of their business has been severely battered as a consequence of the troubles in the microfinance sector.
According to operators in the savings and loans sector, confidence in their business is waning among consumers since savings and loans companies are considered to be the same as microfinance institutions by many people, especially those in the informal sector where the companies largely operate.
This, operators in the savings and loans sector argue, has made it necessary – following the recent challenges in the microfinance sector – for the central bank to consider amending its regulations and allow them to take up a name that implies savings and loans companies are in the business of banking since their mandate allows them to perform a lot of banking transactions, except forex clearing and providing guarantees and safe custody of valuables.