The executive secretary of the Ghana Association of Savings and Loans companies, Tweneboah Koduah Boakye says that management of the various defunct savings and loans should be punished as prescribed by the law.

Speaking on a program on Citi TV monitored by ghanaguardian.com,he says the managers culpable of breaking regulatory compliance should not be spared.

“I mentioned regulatory compliance. If you fail to comply with the laws you should be dealt with and there is enough in the  Act 930 that tell exactly what the Central Bank should do when you go against those laws” he added.

Background

The BoG revoked the licences of the 23 companies because they were highly insolvent.

The BoG also revoked the licences of two non-bank financial institutions, namely Express Funds International Ltd (remittance company) and Ghana Leasing Company Ltd (leasing company).

According to the BoG, the two entities have been insolvent and have been inactive for a number of years.

“This action is pursuant to Section 7 of the Non-Bank Financial Institutions Act, 2008 (Act 774), which mandates the Bank of Ghana to revoke the licence of a non-bank financial institution licensed under that Act if that institution among other things ceases to carry on business,” it said.

Thus, the BoG says it has completed the clean-up of the banking, specialized deposit-taking (SDI), and non-bank financial institutions (NBFI) sectors which began in August 2017.

“This follows the revocation of the licences of nine (9) universal banks, 347 microfinance companies (of which 155 had already ceased operations), 39 micro credit companies/money lenders (10 of which had already ceased operations), 15 savings and loans companies, eight (8) finance house companies, and two (2) non-bank financial institutions that had already ceased operations,” it said.