The performance of Savings and Loans (S&L) Companies in credit deployment over the years has been commendable with the sector contributing 56% of total of Specialised Deposit Taking Institutions (SDIs) as at December 2016 compared to 53% last year.
In terms of credit delivery process, it dominated over its peers in the SDI category, contributing over 45% of total credits as at December 2016.
Mr. Raymond Amanfu, Head of Banking Supervision, Bank of Ghana, in a speech read on his behalf at the 7th Meeting of Chief Executive Officers of S&L organized by the Ghana Association of Savings and Loans Companies (GHASALC) under the theme “The Road to financial inclusion and Capitally Adequate Savings and Loans Company’s in Accra.
He said the increasing asset growth in the S&L sector brings along increased risk build-up, and the need to augment regulation and supervision.
He said the Bank of Ghana will continue to monitor the capital requirements of the S&L institutions as a way of addressing any capital shortfalls.
Mr. Amanfu said minimum capital requirement of S&L sector has improved steadily with eighteen institutions having paid-up capital in excess of the GH¢15 million regulatory limit required for new entrants.
“Strict compliance with our directives on minimum capital requirement will ensure that S&L institutions are adequately capitalized against risks and remain safe and sound in their operations,” he said.
Mr. Amanfu said while capital is a necessary precondition for Savings and Loans institutions to implement their operational strategies, the regulator also admits the importance role adherence to sound risk management plays in the functioning of the institutions.
GHASALC is an association of all Savings and Loans Companies operating in the country with membership numbering thirty-one.