Finance Ministry releases GHC1bn for Non-Bank Financial Institutions cleanup

The finance ministry has released almost GH¢1 billion to help with the cleanup of the microfinance and rural bank sectors.

A report has hinted that the funds were released early May 2019 for the project.

The Bank of Ghana (BoG) in the first quarter requested for financial support from the Ministry of Finance to clean up the microfinance and savings and loans industry to save thousands of depositors from losing their funds.

About 705,396 depositors of distressed or collapsed microfinance companies and rural and community banks (RCBs) risk losing a total of GH¢740.5 million if their financial resources are not shored up swiftly.

The GH¢740.5 million represents deposits currently locked up in the 272 rural and community banks and microfinance companies which were either in distress or had folded up as of last year.

Recent data released by Bank of Ghana showed that 319 microfinance companies are said to be in good standing.

Plans to overhaul non-bank financial institutions (NBFIs), which have been an albatross on the neck of the regulatory authorities, have been on the drawing board for some months now.

But Dr Addison was certain that the clean-up of the sector would happen in the second quarter of this year.

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