Minimum Capital: Increase above 100% dire – Savings and Loans firms

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Savings and Loans Companies in Ghana say any attempt by the Central Bank to increase their minimum capital by more than 100 percent might cripple the industry.

There are reports that the current 15 million Ghana Cedis capital will be raised to 50 million by the end of the Year.

According to the Ghana Association of Savings and Loans Companies (GHASALC), a research conducted among its members revealed that many of them can only survive if the new minimum capital requirement is less than 100 percent.

The Executive Director of the GHASALC, Tweneboa Kodua Boakye, made this known at the Annual General Meeting of the Association.

“The members say, if there will be any increment it should not go beyond 100 percent and there should be a scientific basis on which any increment that comes out is given and fortunately there has not been any figure by the regulator,” Mr. Boakye said.

He added the quantum of capital does not necessarily assure profitability therefore the central bank must ensure that Savings and Loans firms chart a part that will aid economic growth.

“Institution have big capital but yet they collapse,” he said.

Source: Ghana/Starrfmonline.com/103.5FM/Osei Owusu Amankwaah

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