The depositors who will lose such monies are mainly customers of microfinance institutions (MFIs) and Rural and Community Banks (RCBs).
These financial institutions include microfinance institutions (MFIs) and Rural and Community Banks (RCBs).
At a press conference held on Tuesday, March 20, 2018, Dr Addison said the amount represents deposits currently locked up in the 272 RCBs and MFIs, which were either in distress or had folded up.
“In terms of significance, the deposits under distress form 8.81 percent and 52.49 percent of industry total deposits of the RCBs and the MFIs, respectively,” he said.
Dr Addison said that out of the 566 licensed MFIs in 2018, “211 are active but distressed or folded up”.
“Also, out of the 141 RCBs, 37 are active but distressed or folded up. In total, it is estimated that 272 out of the 707 institutions in the sub-sector, representing 38.5 percent, are at risk. This indicates that approximately GH¢740.5 million is owed to an estimated 705,396 depositors of the distressed or folded up MFIs and RCBs,” he added.
Meanwhile, the Chairman of the Ghana Association of Microfinance Companies (GAMC), Collins Amponsah Mensah, said although they are yet to receive the complete data on the state of its members, it had resolved to work with the BoG to help address the various challenges in the sector.
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He urged the general public not to lose hope in the MFIs since the strong and professional ones still existed and are willing to do quality business with them.
KPMG will be managing uniBank least for the next six months because the bank’s “capital adequacy ratio (CAR) has fallen below 50% of the required minimum of 10% (i.e. below 5%).”