BoG not in a hurry to collapse Savings and Loans companies — Governor

The Governor of the Bank of Ghana, Dr. Ernest Addison has said the central bank will first explore options of rescuing savings and loans companies that have the potential of surviving in the long run rather than revoke their licenses.

After its clean-up of the banking and the microfinance sectors, the central bank served notice of an impending clean up in the savings and loans sector.

But speaking at the monetary policy committee’s press conference to announce that policy rate, Dr. Ernest Addison said the central bank’s first option is to rescue savings and loans companies that are solvent but rather having liquidity challenges.

“We are always very careful about making decisions on license revocations. Without clear data which suggest the institution is insolvent, the bank of ghana does not act. we don’t take license revocation on the basis of liquidity shortages; no institution which is solvent but illiquid has had its license revoked.

We will start to look at that sector on the basis of whether the institutions are solvent and be effectively run in the long-term,” he said.

According to the central bank, it is waiting to receive funds from the Fiance Ministry to enable it undertake the clean up of the savings and loans sector.

There are currently over 30 savings and loans companies; a good number of which are unable to meet customers’ demands for deposits.

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