The reforms being introduced by the Bank of Ghana (BoG) in the Microfinance and Specialised Deposit-taking Institutions Sector (SDIs) are not intended to impose stricter regulations merely to burden players in the industry, but to rebuild public confidence, strengthen local participation and ownership, and create more resilient institutions.
The reforms are expected to strengthen the sector’s capital base, governance and risk management while creating a clearer regulatory structure capable of supporting financial inclusion and Ghana’s economic growth.
The Second Deputy Governor of the BoG, Mrs Matilda Asante-Asiedu, said this in Accra yesterday when she addressed the 16th Annual General Meeting (AGM) of the Ghana Association of Savings and Loans Companies (GHALSAC) in Accra yesterday.
Held on the theme: ‘Building Resilience, Deepening Inclusion: Shaping Ghana’s Financial Future,’ the AGM brought together industry players and stakeholders to deliberate on the future of the sector amid sweeping regulatory and technological changes.
Mrs Asante-Asiedu said the reforms would focus on three key pillars — capital, governance and risk management, and structure — to ensure institutions were better equipped to withstand economic shocks and continue serving their customers.
“Revised capital requirements will ensure that institutions can absorb the losses of economic shocks and continue to serve their customers through periods of uncertainty,” she said.
On governance, she said the BoG was raising the bar for the expertise, skills and ethical standards expected of boards and management across the sector.
She assured members that the BoG would continue engaging them, adding that a technical committee had been established to address concerns and support an orderly transition.
The BoG, she said, would also issue regulations covering corporate governance, risk management, business models and last-mile providers for industry consultation.
The Finance Minister, Dr Cassiel Ato Forson, in a speech read on his behalf, commended savings and loans companies for their contribution to financial inclusion, entrepreneurship and economic development.
He said the microfinance sector served more than 19 million Ghanaians, supported over 40,000 direct jobs, managed assets exceeding GH¢50 billion and provided loans of more than GH¢20.5 billion to households and businesses.
He noted that Ghana’s financial inclusion rate had risen to 81 per cent, supported by government policies, regulatory reforms and digital innovation.
The Chairman of the GHALSAC Board and Chief Executive Officer of Best Point Savings and Loans, Dr Fred Safo-Katanka, urged members to remain united as the sector entered a period of significant transformation.
He said the association would organise a shareholders and CEOs’ forum in September, industry games in October and a CEOs and Managing Directors’ presidential retreat in November.
The Chief Executive Officer of GHALSAC, Mr Tweneboah Kodua Boakye, said the association supported the intent of the reforms but wanted the transition to be orderly, realistic and sensitive to the role of microfinance institutions.
He identified financial inclusion, digital transformation, MSME financing and partnerships as major opportunities for the sector, urging institutions to invest in technology, strengthen governance and remain responsive to changing customer needs.
Mr Boakye also disclosed that members had resolved to reposition the association in line with the emerging regulatory framework, while continuing discussions with the BoG and other stakeholders.
He said the future of the sector would depend on the ability of institutions to embrace change and turn current challenges into opportunities for innovation, resilience and growth.
BY KINGSLEY ASARE
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