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Ghana’s savings and loans industry is calling for a regulatory reclassification, arguing that its current designation fails to reflect its financial strength and market position.

Tweneboah Koduah Boakye, Chief Executive of the Ghana Association of Savings and Loans Companies (GHASALC), has urged the Finance Ministry and the Bank of Ghana to support a rebranding effort that would better position the sector.

Speaking at the launch of the association’s five-year strategic plan, he noted that many institutions in the segment now rival the size of banks from a decade ago.

“The current designation does not serve us well. We need the regulator to support the development of the middle tier and recognise that we deserve to be called a bank, given that our balance sheets now exceed those of some banks five or ten years ago,” Mr Boakye said.
The industry, which serves more than 7 million customers nationwide, has a cumulative asset base of GHS 9.7 billion.

However, it continues to face challenges, including a non-performing loan (NPL) ratio of 15%. GHASALC aims to bring this down to 5% as part of its long-term growth strategy.

Mr Boakye also called on the government to accelerate the implementation of a national microfinance policy developed by the Ghana Microfinance Institutions Network (GHAMFIN) and the German development agency GIZ.

The policy, set to replace outdated regulatory frameworks, aims to refocus the sector’s social mission while strengthening its supervisory mechanisms.

GHASALC’s new strategic plan prioritises the expansion of financing for micro, small, and medium-sized enterprises (MSMEs) and households, underscoring the sector’s role in deepening financial inclusion in Ghana.

source: norvanreports.com