The flagbearer of the National Democratic Congress, John Mahama has assured Ghanaians especially small scale businesses that he would rebrand Savings and Loans (S&Ls) industry to facilitate their complementary role in supporting businesses if he is elected as the President on December 7, 2020.
Speaking at the People’s Manifesto launch in Accra, the flagbearer said he will regulate Savings and Loans under a more flexible legal regime by revising Act 930 and the Non-Bank Financial Institutions Act 2008. He also said he would allow NBFIs to clear cheques through the Ghana Integrated Payments System (GhIPSS)
Mr Mahama explained that the Microfinance Institutions (MFIs) will remain committed to making financial services accessible to a large segment of the population under the NDC Government that has little or no access to financial services.
He said, “We commit to provide synergy and integrate the informal sector into the formal financial system. This will not only create employment opportunities but also increase the productivity and household income of the economically active poor.
We will also introduce a new model of microfinance that will be governed by an apex regulator for the MFIs and cluster the institutions into two (2) groups namely, deposit-taking institutions as Tier 1 and non-deposit-taking institutions as Tier 2.
We will again build confidence and strengthen regulation by renewing MFI licenses and certification every two years. Limit the areas of operations of the deposit-taking MFIs to the regions where they operate.”
Commenting on the Capital Markets, the Flagbearer assured Ghanaian business operators that the next NDC government will take steps to restore normalcy and growth to the capital market.
“While the Securities Industry Act, 2016 (Act 929), which was promulgated by the previous NDC Government is still generally adequate for now, we will take additional steps to facilitate the growth of institutions in the capital markets generally. We will review the regulatory and legal framework to make it possible for Metropolitan, Municipal and District Assemblies (MMDAs) to issue bonds on their own.”
According to the former President, the next NDC will restore stability and growth in the capital market as well as develop a new Master Plan to guide progress over the next five (5) years.
He said, “We will encourage the private sector to issue bonds on their own strength and based on the economic viability of proposed projects. Also, build the capacity of the capital market and develop a charter for the Ghana Investment and Securities Institute.”
Source: A1Radioonline.com|101.1MHZ|Moses Apiah|Ghana