Government To Release Locked Up Funds To Customers of Insovent Financial Institutions

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The First Deputy Governor of the Bank of Ghana, Dr. Maxwell Opoku-Afari has announced that government together with the Central Bank and the Receiver have reached an agreement to unlock depositors and financial institutions whose funds are locked-up due to the reforms in the banking sector.

Dr. Opoku-Afari made the announcement at the 7th Rural Banking Week Celebration of the Association of Rural Banks in Takoradi over the weekend.

He said the Central Bank is aware that quite a number of individuals and institutional depositors have had their funds locked-up.

Dr. Opoku-Afari indicated that the receivership is currently ongoing for the Microfinance Institutions, Savings and Loans and other Finance Houses whose licences were withdrawn.

He added that government had recently taken a decision to increase the cap on pay-outs from GHC 10,000 to GHC 20,000 to cater for about 98 percent of depositors being made whole.

Dr. Opoku-Afari stressed that the Central Bank will continue to tighten regulations to ensure stricter supervision and enforcement of prudential and statutory requirements to safeguard financial stability and protect depositors.

According to him,  the implementation of these would ensure the Rural and Community Banks (RCBs) remain strong, and are able to deliver effective financial intermediation leading to financial inclusiveness, social transformation and poverty alleviation in the rural communities.

Following the revocation of the licenses of the 23 Savings and Loans companies and Finance Houses on Friday August 16, 2019, the Bank of Ghana (BoG) gave the assurance that funds are available to pay depositors of the affected companies.

According to the Central Bank,  the revocation of the licenses of the institutions become necessary because they were insolvent even after a reasonable period within which the Bank of Ghana had engaged with them in the hope that they would be recapitalised by their shareholders to return them to solvency.

In line with the government commitment to protect depositors funds, the government made funds available to enable the Receiver pay depositors after their claims are validated.


Ghana | |Matthew Dadzie