The Chief Executive Officer for IFS Financial Services Limited, Kojo Ohene-Kyei has cautioned Finance Houses against projects that may result in financial losses.
According to him, some Finance Houses in a bid to give loans to customers overlook the potential risks, leading to bad loans.
In an interview with Citi Business News, Mr. Ohene-Kyei said it is high time the Association of Finance Houses set up performance standards for themselves to address challenges in the industry.
“We haven’t as at the present time set performance standards for our members but it will definitely help because some of the challenges in the non-bank industry, particularly, the microfinance area have not been managed well,” he said.
Outlining some of the effects of the challenges, Mr. Ohene-Kyei stated that the customer is then forced to receive sub-standard service that may result in misapplication of funds.
“The result of such actions do not only impact their customers but on the general finance industry as well. The industry faces some integrity crisis so it will be important for the association to consider agreeing on some common standards and share difficulties early so that if the association can help it does so”.
About the Association
The Association of Finance Houses (AFH) comprises of a group of Licensed Houses operating in Ghana.
The members are Financial Institutions engaged in the business of; Project Finance Management, Equipment Leasing, Debt Administration, Export financing among others.
The authorized objectives are to educate the employees and public of the products and services of the Association.
By: Anita Arthur/citibusinessnews.com