Ghana: BoG, Finance Ministry Discuss Clean-Up of Micro-Finance Institutions, Rural Banks

The Bank of Ghana (BoG) is in discussions with the Ministry of Finance to initiate a clean-up of the Specialised Deposit-Taking Institutions (SDIs), the Governor, Dr Johnson Asiama, has said.

The clean-up, he noted, would cover micro finance institutions (MFIs) and rural banks.

As part of the clean-up, there is expected to be mergers, acquisitions to strengthen the sector.

Dr Asiama made this known during the 123rd Monetary Policy Committee (MPC) press conference in Accra last Friday, emphasising the need to strengthen the SDI sector.

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"Yes, there has to be a clean-up of that sector. We are engaging the Ministry of Finance, and discussions are ongoing. We will work on that," he stated.

The BoG under the previous administration after the banking sector clean-up hinted of a clean-up of the SDI, but said the country did not have the financial capacity to carry out such exercise.

At last Friday's MPC meeting, the MPC increased the policy rate (the rate central bank lends to the commercial banks) by 100 basis points from 27 per cent to 28 per cent to tame inflation.

Commenting on the broader banking industry, Dr Asiama noted that performance had improved significantly.

Source: All Africa