The Ghana Association of Savings and Loans Companies (GHASALC) has cautioned its members against taking advantage of the current economic crisis to impose high interest rates on loans acquired by clients.
The Executive Secretary of the Association, Tweneboah Kodua Boakye, lamenting the impact of the cedi depreciation and high inflationary rates on their businesses, also urged the public to bear with them in this difficult time.
He spoke to Citi Business News on the sidelines of the first non-bank financial institution awards.
“We want to encourage the public not to chase interest rates. Inflation is rising but can we all support the system by not chasing higher interest rates? We’ll also encourage the financial institutions to be measured in the kind of interest rates that they’ll also be putting on loans.”
He added, “The interest on loans is influenced by the cost of funds and so while the customers are doing their part, we want to encourage the institutions to also support their customers so that they can remain in business.”
Meanwhile, the Ghana Microfinance Institutions Network (GHAMFIN), the umbrella under which GHAMFIN and other non-bank financial institutions fall, has lamented the dent that the financial sector clean-up left on its sector.
According to the Board Chairman of the network, Bernard Joe Appiah, his members are still bearing the brunt of the public’s mistrust or fear for patronizing them since the clean-up was done since 2017.
Also lamenting the current economic situation during a conversation with Citi Business News, Mr. Appiah called on the regulators to intensify engagements with the public to increase patronage of their business.