The Association of Savings and Loans Companies has backed an intentional action by the Bank of Ghana to rid the system of insolvent operators.The Association is sure that the move will replace confidence and balance the financial sector. The Bank of Ghana is set to be stern on all insolvent operators of the thirty-seven Savings and Loans Companies through affiliation or obtain and speculation processes.
It follows a similar exercise carried out in the banking sector to protect depositors’ funds. Executive Secretary of the Association of Savings and Loans Companies, Tweneboa Kodua Boakye says although the move will cause unease among customers, he believes it will definately sanitize and birth a stronger sector.The exercise by the BoG is expected to cost 2 billion cedis to secure the funds of depositors. The action will see BoG move beyond the banking space to other deposit taking institutions for the first time.
STORY BY: AKUA FREMA/ BUSINESS DESK