Executive Director of the Ghana Association of Savings and Loans Companies, Mr. Tweneboah Kodua has attributed the current challenges with microfinance firms to the collapse of some major commercial banks in the country.
His comments come after customers of some saving and loans companies in the country have pleaded with authorities to help them retrieve their locked up cash in these financial institutions.
In a radio interview in Accra, Mr. Kodua explained that the current challenges with some of these savings and loans companies are as a result of the shakeup in the banking sector since the microfinance institutions had relations with some of the now-defunct banks
“The savings and loans companies had clearing banks. And so as required by any complaints regulated business, like the savings and loans companies, they also had business relationship with the various commercial banks. There are a couple of our members who held accounts with these defunct banks. So they had normal business relation and kept their clearing accounts with them.”
Mr. Tweneboah Kodua further added that the delay in the release of their monies by the banks caused them to also hold on with payments to their customers.
He noted that the main banks they were operating with were Beige Bank, Construction bank, Royal bank, uniBank and Sovereign bank.
These five banks were merged together as the Consolidated Bank of Ghana (CBG) in August 2018.
“When they were liquidated or consolidated into the CBG [Consolidated Bank Ghana], it had to take some time for them to be validated and do all these things so some of our members were actually affected by the release of funds by CBG”.
Mr. Tweneboah Kodua further added that, the association believes that the various parties involved in the validation process will soon release the funds these companies had with the now defunct banks in order for the financial institutions to pay their customers.
“We are very confident that CBG, the regulator and government going through the validation and all these things, they’ll soon release the funds these institutions had with them so they could also continually serve their customers”. He added.
Story by: Nicholas Brown/Universnewsroom.com