The Ghana Savings and Loans Companies Association has assured customers of its member companies across the country that their deposits are safe with them.

The Association stressed that they are in constant consultation with the sector regulator, Bank of Ghana to ensure that the right things are done at all times in the best interest of their clients.

They are calling on customers not to panic but continue to save with them as they have done over the years despite the challenges the sector is facing.

In that regard, the Association expressed it's displeasure at the rumours and falsehood been spread around which hints of a possible collapse of many of the Savings and Loans Companies in the country.

In a press statement released by the Association in the wake of growing uncertainties in the financial sector, they urged their clients to keep the faith reposed in them as they keep evolving to satisfy customer needs and demands.

"Customers may be going through a period of uncertainty and experiencing some difficulties in dealing with some of our members. We are however by this press statement assuring all customers that the sector is vibrant and evolving and in readiness to serve our customers better'. The greater majority of members are stable and customers should maintain their confidence in these institutions they have worked with over the years. Customers should, therefore, disregard publications and rumours that suggest that the Savings & Loans sector is collapsing" the statement noted.

It continued, "We, therefore, plead with our esteemed customers to maintain the level of faith and confidence reposed in us over the years and for the general public to engage us to obtain accurate information."

BoG to close down insolvent Savings and Loans

Bank of Ghana in the last year have taken stringent measures to sanitise the financial space especially the banking sector.

This resulted in the take over of UT and Capital Banks by GCB Bank in 2017 and the consolidation of five banks to form the Consolidated Bank of Ghana in 2018.

In a media interaction last week after an economic review meeting, Governor of the Bank of Ghana hinted that some Savings and Loans Companies in bad standing will be shut down.

According to the Governor of the Bank actions taken so far to stabilise the banking sector would not be different from the Savings and Loan Companies.

Dr Addison added the need for such an action saying it will allow Savings and Loans Companies that are in good standing to operate effectively.

He added that “If these Savings and Loans institutions are insolvent, they would have to be liquidated because that is the solution for insolvent financial institutions.”

The Governor added that his outfit is currently engaging the Finance Ministry on how the best approach to deal with the depositors of the Savings and Loans Companies before it goes ahead with any action.

“The engagement would ensure that the necessary funds can be raised on the part of the government to cushion depositors of these institutions. It believed that this could one of the tough measures that that regulator is planning to take to sanitize the entire industry,” the Governor said.