Bank of Ghana likely to shut down 20 savings and loans companies

The Bank of Ghana’s decision to close down more than half of the 37 licensed savings and loans companies is imminent, a source close to the central bank has told Citi Business News.

Bank of Ghana likely to shut down 20 savings and loans companies

he Bank of Ghana’s decision to close down more than half of the 37 licensed savings and loans companies is imminent, a source close to the central bank has told Citi Business News.

According to the source, who asked not to be named, about 20 struggling savings and loans companies would have their licenses revoked any moment from now, suggesting that next week looks plausible.

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 list sighted by Citi Business News 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.

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

Governor of the central bank Dr. Ernest Addison, however, insisted that for the clean up to be possible, the Finance Ministry would have to release funds for that purpose.