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Savings and Loans industry critical to Ghanaian economy

S&L companies disbursed a total of GH¢3.4 billion in net loans for Q1 2022

Code of Ethics and Professional Conduct key for S&L industry

Second Deputy Governor of the Bank of Ghana, Elsie Addo Awadzi, has underscored the importance of the Savings and Loans industry to the Ghanaian economy and financial sector.
She revealed that at the end of the first quarter 2022, total assets of specialised deposit-taking institutions sector exceeded GH¢16.0 billion, out of which the Savings and Loans sub-sector contributed 35.1 percent.

Speaking at 12th Annual General Meeting (AGM) of the Ghana Association of Savings and Loans Companies (GHASALC), Mrs Addo Awadzi said the role of the S&L industry in our economy has been significant in providing critical financial services to the MSME sector, informal sector and households.

“Savings and Loans companies disbursed a total of GH¢3.4 billion in net loans to private enterprises and businesses in the first quarter of 2022 alone,” she disclosed.

The second deputy governor, however, said the Savings and Loans industry has reached a critical point that requires rethinking by key stakeholders to reposition the sector to fully unleash its potential.

She said this will help better serve low-medium income households and the micro, small, and medium-sized business sector which are the main drivers of socio-economic growth for Ghana’s economy.

The second deputy governor also called for the adoption of a Code of Ethics and Professional Conduct for the Savings and Loans sub-sector which she believes has the potential to improve confidence and build trust in the sector.

The theme for this year’s Annual General Meeting was dubbed; “Driving Financial Inclusion through Digitalisation: The Role of Savings and Loans Companies”

Source: Ghanaweb