Welcome, Ladies and Gentlemen of the Media to the 91st and last MPC press briefing for the year.
The Governor of the Bank of Ghana (BoG), Dr Ernest Addison, has revealed that the banking sector of the Ghanaian economy is now profitable after the central bank carried out the cleanup exercise. He said the banks that are operating now are conforming to best practices. “The banking is now profitable liquid and solvent owing the recapitalization exercise which resulted in the collapse of some nine local banks,” he said while speaking at the monetary policy committee (MPC) meeting in Accra on Monday, November 25. Dr Addison added: “The banking sector continues to be solvent, liquid and profitable and the latest stress tests result conducted on the sector shows resilience to shocks. The industry’s financial soundness indicators (FSIs) also continued to improve as banks adhered to sound banking practices following the reforms. “The industry’s Capital Adequacy Ratio (CAR), computed in accordance with the new Capital Requirement Directive (CRD) under the Basel II/III capital framework, stood at 18.9 per cent in October 2019, well above the 13 per cent minimum regulatory benchmark. “Asset quality has also recorded some improvements with a decline in the Non-Performing Loans (NPL) ratio to 17.3 per cent in October 2019 from 20.1 per cent in October 2018. “Adjusting for the fully provisioned loss category, the industry’s NPL ratio declined further to 8.1 per cent from 11.4 per cent over the same comparative periods. The industry’s NPL ratio is projected to further decline as banks intensify loan write-offs and recovery efforts. Increased innovation and technological changes in the payment ecosystem have supported the Bank’s objective of promoting inclusive finance. Access to finance especially among the unbanked segment of the population has improved on account of financial institutions and financial technology companies’ joint deployment of mobile-based products and services. “Currently, there are sixteen (16) FinTechs that have partnered with financial institutions in the provision of mobile-based products. In addition, the completion of the mobile money interoperability project has supported the financial inclusion drive. “Total value of transactions through the interoperability platform was GH¢95.4 billion in September 2019 compared with GH¢32.6 billion in September 2018.”
Georgette Kusi-Boateng and Sam George Acquah Two Directors of Adom Sika Microfinance Limited have been arrested by the Economic and Organized Crime Office (EOCO) for their inability to render account on how depositors’ funds in excess of GH¢150 million were utilized. Sam George Acquah and Georgette Kusi-Boateng were grabbed last Wednesday and subsequently cautioned and released on bail to be reporting later. The Executive Director of EOCO, COP (rtd) Frank Adu-Poku, narrated to DAILY GUIDE that the suspects were unable to render accounts or explain how depositors’ funds were used. He said a review of records of the company revealed that a single debtor identified as Kwaku Ansu had an outstanding loan balance of about GH¢240 million which accounted for over 95% of the loans and advances of the company. “What is even more suspicious was that Ansu’s exposure was as a result of normal and penalty interest built up from 2012 based on a facility of GH¢2.7 million extended by the company to Ansu,” the EOCO boss said. He stated that the exercise EOCO had embarked on against offending Micro Finance Companies and Savings and Loans companies marked a turning point in the approach of law enforcement to the acts of ‘impunity’ by directors of these institutions. “The action of the directors constitutes financial crimes against innocent citizens and for that matter, the state, which EOCO is mandated to investigate,” he added. COP Adu-Poku hinted that the properties and assets acquired by these directors through the diversion of depositors’ funds would be treated as proceeds of crime and EOCO would take all necessary steps to restrain and preserve such assets and take appropriate legal action to ensure that the proceeds were used to compensate their victims. DAILY GUIDE investigation has shown that most of the depositors of Adom Sika Microfinance Limited were military personnel who went on peacekeeping missions outside the country. “These soldiers used their hard-earned monies to invest in the microfinance company with the aim of acquiring more profits only to be disappointed,” a source said
The first Deputy Governor of Bank of Ghana, Dr. Maxwell Opoku-Afari has assured the public that the Ministry of Finance, Bank of Ghana and the Receiver have reached an understanding to find a way to unlock funds belonging to Rural Community Banks (RCB) deposited with MFIs. According to him, discussions on modalities are ongoing and once finalized, it would be announced very soon.
Press Release on 347 Micro Finance Companies (“MFCs”) whose licences were revoked on 31 May 2019 by Bank of Ghana Upward Review of Payments to Depositors whose claims have been validated Accra 8th November 2019. Following the revocation of the licences of the 347 Micro Finance Companies (“MFCs”), the Receiver among other things announced a cap payment of GHS10, 000 for each depositor of these affected companies whose claim(s) have been validated in the receiverships of these MFCs. Based on the total number and value of claims received in the receiverships of these MFCs at the extended deadline date for claims submission on Friday 27 September 2019, the Receiver wishes to announce an increase in the capped payment from GHS10,000 to GHS20,000 per depositor, to all depositors whose claims have been validated and accepted with immediate effect. The Receiver wishes to inform depositors with validated claims above GHS10,000, who have already been paid up to the earlier capped amount of GHS10,000 per depositor that they should expect further payments up to a total of GHS20,000 per depositor where their validated total claim(s) in the receiverships of these MFCs is/are in excess of GHS20,000 per depositor. Where a depositor’s validated claim is in excess of GHS10,000 but is less than GHS20,000, the depositor will receive the full amount of his/her validated claim(s) Please note that the Receiver is in the process of recovering assets of the various MFCs to the extent possible and will make payments to the body of creditors of these affected MFCs including depositor, as appropriate and in accordance with the relevant provisions of Act 930. For further information please contact the below numbers. Signed Contact: Philomena Kuzoe Spokesperson for the Receiver Tel: + 233(0) 20 4904250/ 0550000966 Email: phdovi@gmail.com
Press Release on the 23 Savings & Loans Companies (“S&Ls”) whose licences were revoked by Bank of Ghana on 16 August 2019 Upward Review of Payments to Depositors whose claims have been validated Accra 8th November 2019. Following the revocation of the licences of the 23 Savings & Loans Companies (“S&Ls”), the Receiver among other things announced a cap payment of GHS10, 000 per account for each depositor of these affected companies whose claim(s) have been validated in the receiverships of these S&Ls. Based on the total number and value of claims received in the receiverships of these S&Ls at the extended deadline date for claims submission on Friday 18 October 2019, the Receiver wishes to announce an increase in the capped payment from GHS10,000 to GHS20,000 per account, to all depositors whose claims have been validated and accepted with immediate effect. The Receiver wishes to inform depositors with validated claims above GHS10,000 per account, who have already been paid up to the earlier capped amount of GHS10,000 per account that they should expect further payments up to a total of GHS20,000 per account where their total validated claim(s) in the receiverships of these S&Ls is/are in excess of GHS20,000 per account. Where a depositor’s validated claim is in excess of GHS10,000 per account but is less than GHS20,000 per account, the depositor will receive the full amount of his/her validated claim(s) Please note that the Receiver is in the process of recovering assets of the various S&Ls to the extent possible and will make payments to the body of creditors of these affected S&Ls including depositors, as appropriate and in accordance with the relevant provisions of Act 930. For further information please contact the below numbers. Signed Contact: Philomena Kuzoe Spokesperson for the Receiver Tel: + 233(0) 20 4904250/ 0550000966 Email: phdovi@gmail.com