BoG to shut down 20 Savings and Loans companies

Accra-based Citi FM, quoting unnamed sources, said about 20 struggling savings and loans companies would have their licenses revoked from next week.

The BoG cleaned up the banking sector and the microfinance sectors. It has since served notice of an impending clean up in the savings and loans sector.

A receiver is expected to be appointed by the central bank for for the affected savings and loans companies.

The Governor of the Bank of Ghana, Dr. Ernest Addison has said the first option for the Central Bank is to rescue savings and loans companies that are solvent but rather having liquidity challenges.

Speaking at the recently at the monetary policy committee's press conference, he said the central bank will do all it can to protect savings and loans companies that have the potential of surviving in the long run rather than revoke their licenses.

The BoG further indicated that it is waiting to receive funds from the Finance Ministry to enable it to undertake the clean-up of the savings and loans sector.

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