The Chief Executive officer of Universal Micro Finance Limited, Kwadwo Amofa-Fofie, has stated that the recent clean-up exercise conducted by the Bank of Ghana has made the financial sector very sound, safe and secure for the public to have the confidence to save and do business with the banks.

According to him, the era when someone or a group of people came together and decided to do banking business without a strong liquidity backbone, but solely depend on customers’ deposits and investments, is over.

He has reiterated that any banking or financial institution that has survived the turbulence, and probably the wrath, of the regulator is credible, has a strong liquidity support, and has met the minimum capital requirement – and so is now strong enough to do banking business in the country.

Mr. Amofa-Fofie shared this information and gave the advice at the official opening of Universal Microfinance Limited’s Kumasi branch office, located at Kuma Plaza near Suame Roundabout in Kumasi.

The Kumasi branch brings to four the number of branches currently being operated by Universal Microfinance, with the first three other branches operating in Accra.

Universal Microfinance Limited has seen sustainable growth and development because, according to the CEO, the board makes sure the right decisions are taken; as well as operating within the confines of laws which regulate the financial sector.

“In spite of all the negativities and the bad image that have bedevilled the industry, especially the microfinance sector, one may well ask how Universal Microfinance Limited is still operating, and even expanding and opening branches; this is because we do the right things, and that is why the regulator has found us credible and given us the license to open branches,” he stressed.

The CEO further disclosed that the company has also met the GH¢2million minimum paid-up capital requirement with high liquidity ratios, which gives the company a huge leverage in lending to small enterprises and petty traders to expand their businesses.

He further mentioned that Universal Microfinance is governed by a board of highly esteemed members comprising lawyers, bankers and corporate strategists among others, and they are empowered to formulate useful strategies for management to implement.

Other strategic decisions taken by the company include staff training and grooming to manage customers’ hard-earned money, and also put such monies in short-term investments to give clients a guarantee of instant payment whenever their investments mature.

Universal Microfinance also does proper due diligence in loan applications to ensure they give funds to clients who really need them and can work to pay back the loan with its interest. However, some clients whose loan applications are turned down are given free business advice on how to manage their funds.

“We have come to Kumasi because it is a City of Business. We are here to offer loans as a priority because we have enough funds to sell. The paid-up capital comprises a lot of funds owners of the company have injected into the business. Our high deposits also show the confidence our existing clients have in us,” he added.