BoG to close down over 20 out of the 37 Savings and Loans companies in Ghana

A source close to the Central bank has revealed that, the Bank of Ghana has decided to close down more than half of the 37 officially recognized Savings and Loans companies in Ghana.

According to the source, about 20 struggling savings and loans companies would have their licenses revoked before the end of August 2019.

Meanwhile, the Finance Minister Ken Ofori-Atta in June had stated that the clean-up of the savings and loans sector will happen before September this year.

The source also hinted that the distressed Savings and Loans include companies some of which have ceased operations as well as those that are unable to meet depositors’ demands.

A receiver is expected to be appointed by the bank for these collapsed companies, just as the bank did when it collapsed universal banks and later microfinance institutions.

The depositors of the affected institutions are not going to lose their funds but will be able to retrieve them after going through some laid down procedure to be given by the receiver.

ALSO READ: Finance Minister reveals when Savings and Loans sector cleanup will begin

The Bank of Ghana had continuously spoken about its desire to clean-up that particular sector of weak and insolvent companies.

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