Otumfuo fires Bank of Ghana over micro-finance licenses

Otumfuo fires Bank of Ghana over micro-finance licenses

The paramount king of the Asante Kingdom, Otumfuo Osei Tutu ll, has expressed his displeasure over how the central bank, Bank of Ghana (BoG) issues excess licenses to micro-finance institutions.

According to the monarch, these issuances are being made at the expense of the growth of small scale enterprises.

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In an address, delivered on his behalf by Nana Kwaku Amponsah Sarkodie II, at Sewuahene during the 13th Ashanti Financial Services Excellence Award, he raised his concerns about how the development of more micro-finance companies is a blessing but should be handled with care.

Otumfuo fires Bank of Ghana over micro-finance licenses

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According to King Osei Tutu II, despite the potential to offer financial support to micro and small enterprises, there is the unwholesome potential to cripple such micro and small enterprises through the mismanagement of their savings, or worse still, through the fraudulent misapplication and patent theft of customers’ savings.

Over the past five years, the Bank of Ghana has given financial licenses to well over 400 micro finance institutions according to the monarch's remarks.

Otumfuor noted that well publicised and recent happenings and developments in the micro-finance industry were the source of his concern and therefore urged the Bank of Ghana to institute effective and stringent supervision of the fledgling micro-finance sector to ensure efficiently and sanity in its operations to safeguard the investments of their customers.

He stated that the foreign exchange regime introduced by the BoG in 2014, initially raised hopes of success, but in the end proved ineffective and failed to achieve the expected objective of stabilizing the Cedi.

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