Money lenders have welcomed the revised operating rules and guidelines for microfinance institutions, describing it as adequately addressing their concerns.
After several stakeholder deliberations, microfinance institutions have been categorized into 4; a breakdown from the earlier broad categories of 2.
Tier 1 of the review comprises rural and community banks, finance houses and savings and loans companies which would continue to be regulated under the Banking Act, 2004 (Act 673).
Susu companies, credit unions and other deposit taking and profit making financial NGOs are placed under Tier 2 and expected to have minimum capital of Gh¢100,000.
Money lenders and non-deposit taking financial NGOs are under Tier 3 but are now expected to have capital base of Gh¢60,000 instead of the initially-proposed GH¢100,000.
Individual Susu Collectors and money lenders have also now been classified under Tier 4 with no minimum capital requirement.
Even though the microfinance institution with capital requirement still have up to the end of the year to meet it, Public Relations Officer of the Money Lenders Association of Ghana (M-LAG), Lawrence Agyei told Citi Business News the review satisfactorily addresses their earlier concerns.
“They included money lenders with no capital requirement and that is some source of good news to those who have been in the business for a long time.
"We are generally happy with the Bank of Ghana. At a negotiation table you always do not expect 100% win in your favor and so far their reasoning has been acceptable to us”.
Lawrence Agyei is also certain that the review will guide the public in making informed microfinance decisions.
Source: Ghanaweb.com
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