The Governor of the Bank of Ghana (BoG), Dr Henry Wampah, has urged finance houses to work to meet the statutory minimum capital requirement to enable them to remain in business.
The minimum capital requirement for finance houses was revised upwards from GH¢7 million to GH¢15 million by the BoG as part of efforts to ensure that the finance houses had a sound footing in the industry.
“As we speak, a number of them remain below the minimum capitalisation which is worrying. It is my hope that all finance houses in the country will work towards meeting the revised statutory minimum capital requirement for non-bank financial institutions which pegs the new minimum paid-up capital at GH¢15 million,” he said.
Dr Wampah was speaking on the theme: “Finance houses: Championing the financing needs of businesses in Ghana,” at the inauguration of the Association of Finance Houses (AFH) in Accra.
The AHF is a professional association set up to advance the business interests of its members, institute sound and ethical corporate governance practices, maintain a standard conduct for operations, ensure members’ compliance with statutory regulatory requirements and strengthen its increasing role in Ghana’s financing value chain.
He added that the bank of Ghana would continue to engage the association with the aim of empowering it to complement the efforts of the BoG in shaping the operating environment to enhance operations.
“The Bank of Ghana is fully committed and would play its part in ensuring the safety and soundness of finance houses by ensuring that they have adequate capital, good governance and robust risk management practices in place,” he said.
Higher industry standards
A renowned Investment Consultant, Mr Kwame Pianim, urged members of the association to ensure higher standards in the sector than the regulatory minimum prescribed by the BoG.
“Set your business conducts and practices higher than what the Bank of Ghana has set,” he said.
The Chief Executive Officer of the Ghana Association of Bankers (GAB), Mr D.K. Mensah, in his solidarity message, urged members of the association to be committed in order to achieve the aim for which it was established.
“Looking at your number, I think you can achieve a lot. What is needed is the commitment. Commitment is not just about attending meetings but you have to make your resources available for the association to work with,” he said.
The GAB, he said, had gone through a lot of challenges but with the dedication of captains of industry, it had been able to surmount them, adding that “today we are working closer with the regulator to ensure a stable and sustainable financial system.”
The association
The AFH comprises a group of licensed houses operating in Ghana. It is registered as a non-profit, non-political voluntary business sector-led organisation under the Company’s Act 1963 (Act 179) as a company limited by guarantee.
Its objective, according to its president, Mr Oko Nikoi Dzani, is to educate the employees and public of the products and services of the association.
“The purpose of the formal inauguration is to sensitise the business community and other private sector bodies to the role the association plays in the business financing and investment chain of the economy.”
Its membership is from all the 27 licensed finance houses operating in the country and as part of its vision, the association will push for self-regulation among members to promote a common vision, values and principles to guide the business conduct of its members.
Source: Graphic