Accra, Dec. 7, GNA - Savings and loans companies should design products and services that would address the needs of all categories of customers, both urban and rural, Mr Fredrick France, Head, Banking Supervision Department of the Bank of Ghana (BoG), said on Wednesday.
"Financial institutions (should) deepen financial intermediation through the introduction of innovative instruments and products to suit the needs of the general public and serve the developmental and social requirements of the economy in which they operate," he said. He said this in a speech read on his behalf at the launch of the Tudu Branch of the Pro Credit Savings and Loans Company Limited in Accra. The Tudu Branch of the company is the fifth to be opened in the capital since its establishment three years ago.
Mr France said BoG would ensure that all banks and non-bank financial institutions maintained adequate capital and adopted good credit and liquidity management practices. The BoG, he said, would now operate a system of zero tolerance for regulated institutions with defected capitalisation and advised financial institutions to institute good corporate governance and sound internal control measures. Mr France said savings and loans institutions had come to fill the gaps in the financial system and raised the business to a higher and sounder footing to ensure the delivery of effective and efficient financial service to the sectors of the economy. He commended Pro Credit and other non-bank financial institutions for their commitment to grant credit to sectors that traditional financial institutions were reluctant to deal with and said data at BoG indicated remarkable improvement in aspects of operation of Pro Credit Limited over the years.
"The opening of this branch is a sign of your commitment to the financial industry and vote of confidence in the future of our economy." Mr Alex Reincke, General Manager Pro Credit, said the company was one of the most dynamic players in the financial sector with 350 branches in 19 countries. The success of savings products, he noted, was based on favourable terms and philosophy of access to everyone saying the combination of fast and friendly service was an unrivalled combination. The Tudu Branch, he said, would bring services to the heart of the central business district and would contribute to the further development of the area. Mrs Barbara Odei, Brach Manager, noted that the company was not in the area to compete or threaten any financial institution but to serve the people.